Global economic growth is slowing due to Middle East conflict and constrained AI spending, reducing demand for equities
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"AI capital spending has become a meaningful driver of US growth in its own right, which means a sudden slowdown could weigh on the whole economy and not just on tech stocks. If AI spending is doing much of the heavy lifting in the economy, then a stumble would slow growth just as the Fed is trying to judge how far to cut rates."
"AI expenditures accounted for 92 percent of GDP growth. AI-related spending now contributes more to the nation's GDP growth than all consumer spending combined. In his view, an economy leaning that heavily on one theme is an economy with very little to fall back on."
"The International Monetary Fund lowered its global economic growth forecast to 3%, down from 3.1% in April, citing conflict in the Middle East and pressurized AI spending."