Business & Economy · 5 views
Stocks will tumble much further as AI investment will slow next year then fall in 2028 and drag GDP down too, economist predicts
Capital Economics expects the S&P 500 will be 12% below its current level by the end of 2027, putting it 17% off its early-October peak.
AI Summary
Capital Economics warns that stock markets will face further declines as AI investment slows next year and is projected to fall sharply by 2028, which could pull down overall GDP growth. Chief Economic Adviser Vicky Redwood noted that while AI retains productivity‑boosting potential, she is skeptical that revenue generation will be sufficient to maintain the current pace of spending. The firm’s outlook suggests the slowdown in AI capital expenditures will be a key drag on broader economic performance.
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