BIS Warns AI-Driven Market Vulnerable Amid Tech Debt Surge

The Bank for International Settlements (BIS) warns that the AI-driven equity rally is vulnerable due to rising leverage and concerns over the future profitability of major tech firms. Aggregate borrowing by tech firms surged from $22B to $1.2T, leading to increased debt levels. The BIS advises caution and highlights the need for investors to reassess the sustainability of the rally.