FI: AI boom is vulnerable
Photo: Anna Tärnhuvud/SVD/TT

FI: AI boom is vulnerable

High expectations for AI have driven up stock markets and a correction risks, in the worst case, triggering global financial stress, warns the Swedish Financial Supervisory Authority in its stability report.

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In its second stability report of the year, the authority writes that the market, where a few large AI and tech companies have driven the stock market upswing, is vulnerable. If there were to be a sharp correction in the stock market, it could cause global financial stress that would also spread to Sweden.

The authority also notes that risk-taking in the stock market has increased sharply since the unrest last spring.

Furthermore, the Swedish Financial Supervisory Authority writes that there is still a recession in Sweden, but recovery is starting to appear.

"We have seen signs of a recovery and going forward, lower interest rates and stronger income development will strengthen household finances. However, given the global situation and a deteriorating security situation, the development is uncertain," says Malin Alpen, acting Director General of FI, in a press release.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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