IMF and Bank of England warn of correction on the stock markets

The International Monetary Fund (IMF) and the Bank of England are warning of a correction in global stock markets that could be caused by a decline in investor enthusiasm for artificial intelligence (AI).

Ahead of the IMF negotiations, Kristalina Georgieva warned that uncertainty was becoming the new normal. She cited signs of concern in the global economy, such as high stock valuations due to AI euphoria, the full impact of US tariff policy, and record gold prices. In her view, history shows that market sentiment can change suddenly.

The Bank of England issued a similar warning, pointing to the growing risk of a sharp market correction. It emphasized that valuations of technology companies specializing in AI are currently stretched. Possible triggers for a correction could be disappointments in the introduction of AI or increased competition.

The warnings also echo the appeals of executives such as Sam Altman of OpenAI and US Federal Reserve Chairman Jerome Powell. Some experts describe the situation as a potential bubble, with the question remaining as to how long the trend will continue. The information was published by the Scottish Financial News portal.

(sie)