IMF names an AI correction a top global financial-stability risk
The October Global Financial Stability Report lists an AI asset correction alongside rising government borrowing costs and a major cyberattack as plausible near-term catalysts for market turmoil. The Magnificent Seven now exceed 35 percent of the S&P 500. The Fund tracked roughly $300 billion in hyperscaler equity into weaker AI firms plus $650 billion in debt against $1.4 trillion in future revenue commitments, and its downside scenario has a steep AI investment drop cutting global GDP 1.1 percent by 2028.