A Lasting AI Sell-Off Is One of the Biggest Risks to the Economy, BofA Warns

America Can’t Afford an AI Recession

AI investments are driving the economy. That’s a dangerous tightrope. Over the past several days, as Donald Trump has flown across the country to rally Republican voters in contested midterm races, he has returned again and again to a version of the same point: “I had the greatest economy in the … Source

A lasting AI sell-off is one of the biggest risks to the economy, BofA warns

Wall Street hedge funds have already backed away from AI. BofA's economists warn the rest of the economy may not be able to. In a report Monday, BofA Global Research economists called a sustained correction in the AI trade "one of the larger risks to the US and global economy." A slowdown would…

BofA warns of AI correction risk as data-center backlash hits the 2026 midterms

“A sustained correction in the AI trade is a major risk to the global economy,” BofA Global Research’s economists wrote Monday, the day before a midterm vote in which data centers are on the ballot in 10 states. “Investors are increasingly concerned about the sustainability of the AI trade, and the more capex rises, the […]