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IMF and BoE warn AI boom risks ‘abrupt’ stock market correction

Financial Times•Wednesday, October 8, 2025 at 2:00:06 PM
NegativeFinancial Markets
IMF and BoE warn AI boom risks ‘abrupt’ stock market correction
The International Monetary Fund (IMF) and the Bank of England (BoE) have raised alarms about the rapid rise of artificial intelligence (AI) and its potential to trigger a sudden correction in stock market valuations, which are nearing levels reminiscent of the dotcom bubble. This warning is significant as it highlights the fragility of current market conditions and the risks investors face, suggesting that the excitement around AI could lead to overvaluation and subsequent financial instability.
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