‘A major risk to the global economy’: BofA warns about the AI boom the day before a midterm vote framed around data-center backlash

“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 more risks loom,” they wrote. A slowdown would hit growth directly and through the wealth effect, as stock gains that have propped up spending reverse. They also tie some of the rise in interest rates to the borrowing needed to pay for the buildout.

Source: Fortune Crypto