Despite the stock crash, the AI-fueled bubble will soon regain momentum, economist says

Category: Finance

The stock market experienced significant losses due to recession fears, with the S&P 500 down 2.5% and the Nasdaq down 3.6%. Despite this, Capital Economics predicts a continued AI boom and a potential stock rally, citing expectations for aggressive rate cuts by the Federal Reserve. Recent earnings from major tech companies indicate substantial investments in AI infrastructure, suggesting resilience in the sector. Experts advise against overreacting to job market weaknesses, emphasizing ongoing growth in household income and consumer spending.

Keywords: Stock Market, Recession, Artificial Intelligence

Source: Fortune

Update At: 8/5/2024

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