S&P 500 could drop by over 50% if the Gen AI bubble burst is followed by a recession

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Alphabet’s earnings call revealed a possible delay in Gen AI adoption, and a possible Gen AI capex overinvestment.
Thus, the Alphabet earnings report potentially triggered the Gen AI bubble burst.
The S&P 500 could drop by over 50% if the Gen AI bubble burst is followed by a recession, which is what happened during the 2000 dot-com bubble burst.

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seekingalpha.com/article/4706536-alphabet-busts-the-gen-ai-bubble

 

U.S. equities were extra jittery in the past week as investors navigated a sharp selloff in big-tech names and a rotation into small-cap and value stocks. This movement from large to small has been one of the main market trends in July, enough to gain its own nickname — the “Great Rotation.”
Magnificent Seven stocks fell back down to reality and even entered correction territory.

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www.marketwatch.com/amp/story/feds-next-moves-could-seal-the-fate-of-tech-stocks-and-small-caps-528fdca1

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