The Canada Brief

Economy · 8 d ago

Server cabinet with network cables

Economists warn Trump's AI push leaves the US economy exposed to a bubble

AI-dependent share of the Nasdaq 100

70 % of the index weight

About 70 per cent of the Nasdaq 100's index weight is in companies that depend on AI.

"It is entirely plausible to have a 30% — or more — drop in the stock market, and in the context of an economy so dependent on AI, this in turn could easily lead to a recession and widespread financial distress."

— Kenneth Rogoff, Harvard economist

Inflation has climbed to 3.7 per cent from 2.9 per cent at the end of Joe Biden's presidency, and 77 per cent of Americans rate the economy fair or poor in one poll.