BIS Flags Vulnerability in Global AI-Fueled Market Rally

The Bank for International Settlements (BIS) warns of growing vulnerability in the AI-linked rally driving global stock markets. Investors are becoming cautious about AI profitability, and leverage at major US tech firms is rising. The BIS report also points to strains on public finances, geopolitical tensions, and volatile energy prices. The hundreds of billions in debt issued by AI firms could be contributing to rising government bond market borrowing costs. Despite this, the BIS sees no signs of stress and notes investors' risk appetite remains resilient.