BoE Warns of Global Market Correction Amid AI Hype, Fed Risks

The Bank of England warned that global markets are at risk of a sharp correction if investor confidence in artificial intelligence or the independence of the U.S. Federal Reserve falters. The central bank highlighted that AI-driven tech giants like Nvidia, Microsoft, and Meta now dominate nearly 30% of the S&P 500’s value—levels similar to the dotcom bubble—raising fears of overvaluation. It also cautioned that political interference with the Fed could erode market stability, while geopolitical tensions and debt vulnerabilities add to the fragility, potentially triggering widespread sell-offs and higher borrowing costs worldwide.