AI bubble threat looms over UK economy and Reeves’ budget plans
Chancellor Rachel Reeves faces potential financial turmoil as warnings grow over an AI-driven stock market today bubble. A sharp drop in tech shares could slash UK growth and disrupt her budget plans. The Office for Budget Responsibility (OBR) has highlighted the risks of a crash in overvalued US tech stocks, particularly the so-called Magnificent Seven.
Investor excitement over AI has pushed US tech stock valuations to record highs. Critics argue these prices are now dangerously inflated, creating a bubble that could burst. The European Central Bank has also flagged concerns about stretched market today valuations in the same sector.
The threat of an AI bubble burst poses a direct challenge to the UK’s economic stability. A stock market today crash would drain public finances, cut growth, and force difficult choices for the Treasury. The OBR’s warnings underline how closely Reeves’ budget plans now hinge on the fragile health of global tech stocks.
