Are we heading towards a big AI crash? ECB view

Benchmarks Nifty24,154.90-132.75FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return23.3 % Invest NowEnter search text:HomeETPrimeMarketsMarket DataNewsIndustrySMEPoliticsWealthMFTechAICareersOpinionNRIPanache Powered By The Economic Times daily newspaper is available online now. Read Today's Paper Is market heading towards a big AI crash like the dot-com crisis? Here's what European Central Bank predictsSECTIONSIs market heading towards a big AI crash like the…

TechnologyNews Info Wire3 min read
Are we heading towards a big AI crash? ECB view
Benchmarks
Nifty24,154.90-132.75
FEATURED FUNDS

★★★★★
Motilal Oswal Midcap Fund Direct-Growth
5Y Return
23.3 %
Invest Now
Enter search text:

Home
ETPrime
Markets
Market Data
News
Industry
SME
Politics
Wealth
MF
Tech
AI
Careers
Opinion
NRI
Panache
Powered By
The Economic Times daily newspaper is available online now.
Read Today’s Paper

Is market heading towards a big AI crash like the dot-com crisis? Here’s what European Central Bank predicts

SECTIONS
Is market heading towards a big AI crash like the dot-com crisis? Here’s what European Central Bank predicts
Debaroti Adhikary

Follow us
Font Size

AbcSmall
AbcMedium
AbcLarge
Save
Print
Synopsis

The European Central Bank warns that an AI market correction on Wall Street is likely, citing historical tech bubbles like the dot-com era. Even if AI succeeds, overstretched valuations, shifting macro risks, and limited policy buffers could trigger sharp stock adjustments, impacting euro area investors.

Listen to this article in summarized format

Loading…
×
Subscribe to

Unlock AI Briefing and Premium Content

New Year Offer 24 Hours Left

What’s Included

Agencies

ECB warns of potential AI market correction

Amid the rising exuberance around artificial intelligence, European Central Bank feels that a market correction on Wall Street is probable and could have far-reaching consequences due to limits in fiscal and monetary policy buffers to blunt the potential economic hit.

In a blog post titled ‘The AI boom: rational enthusiasm or the next dot-com bubble?’, ECB highlighted that the rise of artificial intelligence has driven a blistering rally in the tech sector, bringing valuations in the stock market to levels last seen during the dot-com bubble.

As on 18 Aug 2026, 09:38 PM IST

S&P 500 Top Gainers

Targa Resources298.37(7.35%)
Ulta Beauty522.62(5.94%)
GoDaddy97.09(5.11%)
Insulet146.27(4.70%)

S&P 500 Top Losers

Teradyne402.24(-9.23%)
Coterra Energy32.56(-8.62%)
Seagate Technology Hldgs914.17(-8.10%)
Corning159.74(-7.78%)

Live Events

Add Now!
ai market correction ecbwill ai tech bubble bursteuropean central bank ai bubble warningdot com crash comparison ai stock marketwall street tech correction predictionmichael burry ai crash warningai stock market correction

(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Top Trending Stocks: SBI Share Price, Axis Bank Share Rate, HDFC Bank Share Price, Infosys Share Rate, Wipro Share Price, NTPC Share Rate

(You can now subscribe to our ETMarkets WhatsApp channel)
Ai market correction ecbwill ai tech bubble bursteuropean central bank ai bubble warningdot com crash comparison ai stock marketwall street tech correction predictionmichael burry ai crash warningai stock market correction

Power shift, a déjà vu: Air India could be new CEO’s toughest flight yet

The Nifty doesn’t predict India. It records it

ET Prime special series: Bigger or Better? Bharat Electronics’ 2013 to 2026 journey – Part 2

Will Uncle Sam’s 100% tariff threat stop India’s Russian oil imports?

ET Prime special series: Bigger or Better? Bharat Electronics’ 2013 to 2026 journey – Part 1

View all Stories
Enter search text:
BrowseCompanies:
ABCDEFGHIJKLMNOPQRSTUVWXYZ
123456789

Related stories

Technology2 min read

Dabur, Lotte, FnP fix labels after FSSAI notices

Benchmarks Nifty24,154.90-132.75FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return23.3 % Invest NowEnter search text:HomeETPrimeMarketsMarket DataNewsIndustrySMEPoliticsWealthMFTechAICareersOpinionNRIPanacheThe Economic Times daily newspaper is available online now. Read Today's…

Technology1 min read

खबर हटके- पाकिस्तान में गधों की रेस: AI बॉयफ्रेंड से महिला ने…

खबर हटके- पाकिस्तान में गधों की रेस:AI बॉयफ्रेंड से महिला ने पैदा किया AI बच्चा; नंगे पैर पूरी की 6 मैराथन16 मिनट पहलेलेखक: आकाश…

Leave a Reply

Your email address will not be published. Required fields are marked *