IMF: AI share crash threatens global financial stability

The IMF's Global Financial Stability Report names an AI asset price correction, rising government borrowing costs and a major cyber-attack as the three salient risks to stability. The Magnificent Seven now make up over 35% of the S&P 500, up from 12% a decade ago, while circular financing deals between hyperscalers and weaker AI firms hit $300bn in three years plus $650bn in debt.

• Magnificent Seven now over 35% of the S&P 500, up from 12% a decade ago
• Circular deals between hyperscalers and AI firms: $300bn in three years
• Plus $650bn in debt against $1.4tn in future financial commitments
• Asian markets most exposed outside the US; UK and euro area more insulated