The unwinding of the AI trade will have bigger consequences than we think

The author argues that the unwinding of the AI trade is beginning and will have wider consequences for the broader market than commonly recognized. As speculative funding sputters and investor enthusiasm fades, companies far beyond Silicon Valley that pivoted to serve the AI boom are already experiencing steep stock declines. A Bloomberg analysis cited in the article indicates that corporate and regulatory dependency on tech has reached record levels, with technology now accounting for more than 50% of the S&P 500's market cap. Open article →