The extraordinary rise of
synthetic intelligence
and the inventory market increase that has include it have drawn many comparisons with the dot-com bubble of the late Nineteen Nineties.
The lengthy and painful unwinding of that technology-driven rally noticed the
S&P 500
fall 49 per cent from its peak in March 2000 to the trough in October 2002. Info know-how and communication providers fell 82 per cent and 74 per cent, respectively in the identical interval.
Latest selloffs within the tech sector has raised alarms that when once more the top is nigh, however Capital Economics shouldn’t be satisfied. It thinks that the “AI bubble” has one other yr or so to inflate.
If the rally continues and the S&P 500 hits 8,000 by the top of 2026, as Capital predicts, then drops of not less than 30 per cent within the index and 60 per cent within the big-tech sectors mixed are doable, stated John Higgins, Capital’s chief markets economist.
If that seems like lots, Higgins factors out that the S&P 500 can be 25 per cent decrease at this time if not for the AI increase, and that isn’t counting the additional rally Capital is predicting for 2026.
The correction Capital envisions can be barely smaller and considerably shorter than the dot-com meltdown.
One factor that may be lacking is a
recession
, which adopted the market crash in 2001 and was largely introduced on by
Federal Reserve
rate of interest hikes.
Between 1995 and its peak in March 2000, the Nasdaq rose 400 per cent within the frenzy for web shares and tech corporations. Involved about inflation, the Fed began to boost charges in 1999 and in lower than a yr had hiked them 1.5 share factors.
This time round it’s much more doubtless that the Fed will minimize reasonably than elevate charges and Capital shouldn’t be anticipating a recession.
There will likely be collateral injury. Whereas defensive sectors reminiscent of shopper staples ought to maintain up properly, utilities, which have been boosted by the massive energy calls for of AI knowledge centres, will fare much less properly, stated Capital.
On the brilliant aspect, because the S&P 500 turns into much less targeting tech, different shares may climb greater, as they did after the dot-com crash.
However what occurs to massive tech? Capital stated 5 years after the crash in 2000 these sectors recovered, however didn’t retain their former glory over different cyclical shares.
“One thing related would possibly occur once more, because the increase to productiveness from the AI revolution began to indicate up in additional components of the financial system,” stated Higgins.
Capital could also be proper concerning the rally having additional to run. This morning, tech shares have been as soon as once more main features after final week’s selloff.
However the economists did add this warning: “given the pullback within the inventory market, it isn’t out of the query that the bubble is beginning to burst now.”
Join right here to get Posthaste delivered straight to your inbox.
Canadian shopper spending slowed to the weakest tempo in a yr within the third quarter amid uncertainty concerning the financial system and tariffs.
Retail gross sales grew 0.2 per cent
after rising 0.3 per cent within the earlier quarter, knowledge from Statistics Canada confirmed Friday. September gross sales fell 0.7 per cent whereas an early estimate confirmed October gross sales as flat.
“Canadian retail gross sales proceed a holding sample as help from decrease rates of interest faces headwinds from commerce uncertainty,” stated Shelly Kaushik, senior economist at Financial institution of Montreal.
“The larger image is certainly one of delicate financial progress that may do little to maneuver the needle for the Financial institution of Canada heading into its December assembly.”
- Hearth chat with Peter Routledge, Superintendent of Monetary Establishments in Toronto
- Ghislain Houle, chief monetary officer of Canadian Nationwide Railway will converse on the Desjardins Toronto Convention.
- Earnings: Alimentation Couche-Tard Inc., Agilent Applied sciences Inc., Keysight Applied sciences Inc.
- Is ‘lifelong renting’ changing into the brand new regular? Information suggests we’re heading that means
- Who’s Amancio Ortega, the Spanish billionaire shopping for up prime Canadian workplace towers?
- The within story of Fairfax Monetary’s even greater ‘Large Quick’
The current bout of punishing selloffs have traders questioning whether or not that is the top of the market get together. Investing professional Peter Hodson takes a have a look at have a look at 5 indicators of a market correction and the place we would stand now.
Learn on
McLister on mortgages
Need to study extra about mortgages? Mortgage strategist Robert McLister’s
Monetary Put up column
can assist navigate the complicated sector, from the newest developments to financing alternatives you gained’t wish to miss. Plus test his
mortgage price web page
for Canada’s lowest nationwide mortgage charges, up to date day by day.
Monetary Put up on YouTube
Go to the Monetary Put up’s
YouTube channel
for interviews with Canada’s main specialists in enterprise, economics, housing, the power sector and extra.
At the moment’s Posthaste was written by Pamela Heaven with extra reporting from Monetary Put up workers, The Canadian Press and Bloomberg.
Have a narrative concept, pitch, embargoed report, or a suggestion for this text? E mail us at
.
Bookmark our web site and help our journalism: Don’t miss the enterprise information it’s worthwhile to know — add financialpost.com to your bookmarks and join our newsletters right here
The extraordinary rise of
synthetic intelligence
and the inventory market increase that has include it have drawn many comparisons with the dot-com bubble of the late Nineteen Nineties.
The lengthy and painful unwinding of that technology-driven rally noticed the
S&P 500
fall 49 per cent from its peak in March 2000 to the trough in October 2002. Info know-how and communication providers fell 82 per cent and 74 per cent, respectively in the identical interval.
Latest selloffs within the tech sector has raised alarms that when once more the top is nigh, however Capital Economics shouldn’t be satisfied. It thinks that the “AI bubble” has one other yr or so to inflate.
If the rally continues and the S&P 500 hits 8,000 by the top of 2026, as Capital predicts, then drops of not less than 30 per cent within the index and 60 per cent within the big-tech sectors mixed are doable, stated John Higgins, Capital’s chief markets economist.
If that seems like lots, Higgins factors out that the S&P 500 can be 25 per cent decrease at this time if not for the AI increase, and that isn’t counting the additional rally Capital is predicting for 2026.
The correction Capital envisions can be barely smaller and considerably shorter than the dot-com meltdown.
One factor that may be lacking is a
recession
, which adopted the market crash in 2001 and was largely introduced on by
Federal Reserve
rate of interest hikes.
Between 1995 and its peak in March 2000, the Nasdaq rose 400 per cent within the frenzy for web shares and tech corporations. Involved about inflation, the Fed began to boost charges in 1999 and in lower than a yr had hiked them 1.5 share factors.
This time round it’s much more doubtless that the Fed will minimize reasonably than elevate charges and Capital shouldn’t be anticipating a recession.
There will likely be collateral injury. Whereas defensive sectors reminiscent of shopper staples ought to maintain up properly, utilities, which have been boosted by the massive energy calls for of AI knowledge centres, will fare much less properly, stated Capital.
On the brilliant aspect, because the S&P 500 turns into much less targeting tech, different shares may climb greater, as they did after the dot-com crash.
However what occurs to massive tech? Capital stated 5 years after the crash in 2000 these sectors recovered, however didn’t retain their former glory over different cyclical shares.
“One thing related would possibly occur once more, because the increase to productiveness from the AI revolution began to indicate up in additional components of the financial system,” stated Higgins.
Capital could also be proper concerning the rally having additional to run. This morning, tech shares have been as soon as once more main features after final week’s selloff.
However the economists did add this warning: “given the pullback within the inventory market, it isn’t out of the query that the bubble is beginning to burst now.”
Join right here to get Posthaste delivered straight to your inbox.
Canadian shopper spending slowed to the weakest tempo in a yr within the third quarter amid uncertainty concerning the financial system and tariffs.
Retail gross sales grew 0.2 per cent
after rising 0.3 per cent within the earlier quarter, knowledge from Statistics Canada confirmed Friday. September gross sales fell 0.7 per cent whereas an early estimate confirmed October gross sales as flat.
“Canadian retail gross sales proceed a holding sample as help from decrease rates of interest faces headwinds from commerce uncertainty,” stated Shelly Kaushik, senior economist at Financial institution of Montreal.
“The larger image is certainly one of delicate financial progress that may do little to maneuver the needle for the Financial institution of Canada heading into its December assembly.”
- Hearth chat with Peter Routledge, Superintendent of Monetary Establishments in Toronto
- Ghislain Houle, chief monetary officer of Canadian Nationwide Railway will converse on the Desjardins Toronto Convention.
- Earnings: Alimentation Couche-Tard Inc., Agilent Applied sciences Inc., Keysight Applied sciences Inc.
- Is ‘lifelong renting’ changing into the brand new regular? Information suggests we’re heading that means
- Who’s Amancio Ortega, the Spanish billionaire shopping for up prime Canadian workplace towers?
- The within story of Fairfax Monetary’s even greater ‘Large Quick’
The current bout of punishing selloffs have traders questioning whether or not that is the top of the market get together. Investing professional Peter Hodson takes a have a look at have a look at 5 indicators of a market correction and the place we would stand now.
Learn on
McLister on mortgages
Need to study extra about mortgages? Mortgage strategist Robert McLister’s
Monetary Put up column
can assist navigate the complicated sector, from the newest developments to financing alternatives you gained’t wish to miss. Plus test his
mortgage price web page
for Canada’s lowest nationwide mortgage charges, up to date day by day.
Monetary Put up on YouTube
Go to the Monetary Put up’s
YouTube channel
for interviews with Canada’s main specialists in enterprise, economics, housing, the power sector and extra.
At the moment’s Posthaste was written by Pamela Heaven with extra reporting from Monetary Put up workers, The Canadian Press and Bloomberg.
Have a narrative concept, pitch, embargoed report, or a suggestion for this text? E mail us at
.
Bookmark our web site and help our journalism: Don’t miss the enterprise information it’s worthwhile to know — add financialpost.com to your bookmarks and join our newsletters right here
The extraordinary rise of
synthetic intelligence
and the inventory market increase that has include it have drawn many comparisons with the dot-com bubble of the late Nineteen Nineties.
The lengthy and painful unwinding of that technology-driven rally noticed the
S&P 500
fall 49 per cent from its peak in March 2000 to the trough in October 2002. Info know-how and communication providers fell 82 per cent and 74 per cent, respectively in the identical interval.
Latest selloffs within the tech sector has raised alarms that when once more the top is nigh, however Capital Economics shouldn’t be satisfied. It thinks that the “AI bubble” has one other yr or so to inflate.
If the rally continues and the S&P 500 hits 8,000 by the top of 2026, as Capital predicts, then drops of not less than 30 per cent within the index and 60 per cent within the big-tech sectors mixed are doable, stated John Higgins, Capital’s chief markets economist.
If that seems like lots, Higgins factors out that the S&P 500 can be 25 per cent decrease at this time if not for the AI increase, and that isn’t counting the additional rally Capital is predicting for 2026.
The correction Capital envisions can be barely smaller and considerably shorter than the dot-com meltdown.
One factor that may be lacking is a
recession
, which adopted the market crash in 2001 and was largely introduced on by
Federal Reserve
rate of interest hikes.
Between 1995 and its peak in March 2000, the Nasdaq rose 400 per cent within the frenzy for web shares and tech corporations. Involved about inflation, the Fed began to boost charges in 1999 and in lower than a yr had hiked them 1.5 share factors.
This time round it’s much more doubtless that the Fed will minimize reasonably than elevate charges and Capital shouldn’t be anticipating a recession.
There will likely be collateral injury. Whereas defensive sectors reminiscent of shopper staples ought to maintain up properly, utilities, which have been boosted by the massive energy calls for of AI knowledge centres, will fare much less properly, stated Capital.
On the brilliant aspect, because the S&P 500 turns into much less targeting tech, different shares may climb greater, as they did after the dot-com crash.
However what occurs to massive tech? Capital stated 5 years after the crash in 2000 these sectors recovered, however didn’t retain their former glory over different cyclical shares.
“One thing related would possibly occur once more, because the increase to productiveness from the AI revolution began to indicate up in additional components of the financial system,” stated Higgins.
Capital could also be proper concerning the rally having additional to run. This morning, tech shares have been as soon as once more main features after final week’s selloff.
However the economists did add this warning: “given the pullback within the inventory market, it isn’t out of the query that the bubble is beginning to burst now.”
Join right here to get Posthaste delivered straight to your inbox.
Canadian shopper spending slowed to the weakest tempo in a yr within the third quarter amid uncertainty concerning the financial system and tariffs.
Retail gross sales grew 0.2 per cent
after rising 0.3 per cent within the earlier quarter, knowledge from Statistics Canada confirmed Friday. September gross sales fell 0.7 per cent whereas an early estimate confirmed October gross sales as flat.
“Canadian retail gross sales proceed a holding sample as help from decrease rates of interest faces headwinds from commerce uncertainty,” stated Shelly Kaushik, senior economist at Financial institution of Montreal.
“The larger image is certainly one of delicate financial progress that may do little to maneuver the needle for the Financial institution of Canada heading into its December assembly.”
- Hearth chat with Peter Routledge, Superintendent of Monetary Establishments in Toronto
- Ghislain Houle, chief monetary officer of Canadian Nationwide Railway will converse on the Desjardins Toronto Convention.
- Earnings: Alimentation Couche-Tard Inc., Agilent Applied sciences Inc., Keysight Applied sciences Inc.
- Is ‘lifelong renting’ changing into the brand new regular? Information suggests we’re heading that means
- Who’s Amancio Ortega, the Spanish billionaire shopping for up prime Canadian workplace towers?
- The within story of Fairfax Monetary’s even greater ‘Large Quick’
The current bout of punishing selloffs have traders questioning whether or not that is the top of the market get together. Investing professional Peter Hodson takes a have a look at have a look at 5 indicators of a market correction and the place we would stand now.
Learn on
McLister on mortgages
Need to study extra about mortgages? Mortgage strategist Robert McLister’s
Monetary Put up column
can assist navigate the complicated sector, from the newest developments to financing alternatives you gained’t wish to miss. Plus test his
mortgage price web page
for Canada’s lowest nationwide mortgage charges, up to date day by day.
Monetary Put up on YouTube
Go to the Monetary Put up’s
YouTube channel
for interviews with Canada’s main specialists in enterprise, economics, housing, the power sector and extra.
At the moment’s Posthaste was written by Pamela Heaven with extra reporting from Monetary Put up workers, The Canadian Press and Bloomberg.
Have a narrative concept, pitch, embargoed report, or a suggestion for this text? E mail us at
.
Bookmark our web site and help our journalism: Don’t miss the enterprise information it’s worthwhile to know — add financialpost.com to your bookmarks and join our newsletters right here
The extraordinary rise of
synthetic intelligence
and the inventory market increase that has include it have drawn many comparisons with the dot-com bubble of the late Nineteen Nineties.
The lengthy and painful unwinding of that technology-driven rally noticed the
S&P 500
fall 49 per cent from its peak in March 2000 to the trough in October 2002. Info know-how and communication providers fell 82 per cent and 74 per cent, respectively in the identical interval.
Latest selloffs within the tech sector has raised alarms that when once more the top is nigh, however Capital Economics shouldn’t be satisfied. It thinks that the “AI bubble” has one other yr or so to inflate.
If the rally continues and the S&P 500 hits 8,000 by the top of 2026, as Capital predicts, then drops of not less than 30 per cent within the index and 60 per cent within the big-tech sectors mixed are doable, stated John Higgins, Capital’s chief markets economist.
If that seems like lots, Higgins factors out that the S&P 500 can be 25 per cent decrease at this time if not for the AI increase, and that isn’t counting the additional rally Capital is predicting for 2026.
The correction Capital envisions can be barely smaller and considerably shorter than the dot-com meltdown.
One factor that may be lacking is a
recession
, which adopted the market crash in 2001 and was largely introduced on by
Federal Reserve
rate of interest hikes.
Between 1995 and its peak in March 2000, the Nasdaq rose 400 per cent within the frenzy for web shares and tech corporations. Involved about inflation, the Fed began to boost charges in 1999 and in lower than a yr had hiked them 1.5 share factors.
This time round it’s much more doubtless that the Fed will minimize reasonably than elevate charges and Capital shouldn’t be anticipating a recession.
There will likely be collateral injury. Whereas defensive sectors reminiscent of shopper staples ought to maintain up properly, utilities, which have been boosted by the massive energy calls for of AI knowledge centres, will fare much less properly, stated Capital.
On the brilliant aspect, because the S&P 500 turns into much less targeting tech, different shares may climb greater, as they did after the dot-com crash.
However what occurs to massive tech? Capital stated 5 years after the crash in 2000 these sectors recovered, however didn’t retain their former glory over different cyclical shares.
“One thing related would possibly occur once more, because the increase to productiveness from the AI revolution began to indicate up in additional components of the financial system,” stated Higgins.
Capital could also be proper concerning the rally having additional to run. This morning, tech shares have been as soon as once more main features after final week’s selloff.
However the economists did add this warning: “given the pullback within the inventory market, it isn’t out of the query that the bubble is beginning to burst now.”
Join right here to get Posthaste delivered straight to your inbox.
Canadian shopper spending slowed to the weakest tempo in a yr within the third quarter amid uncertainty concerning the financial system and tariffs.
Retail gross sales grew 0.2 per cent
after rising 0.3 per cent within the earlier quarter, knowledge from Statistics Canada confirmed Friday. September gross sales fell 0.7 per cent whereas an early estimate confirmed October gross sales as flat.
“Canadian retail gross sales proceed a holding sample as help from decrease rates of interest faces headwinds from commerce uncertainty,” stated Shelly Kaushik, senior economist at Financial institution of Montreal.
“The larger image is certainly one of delicate financial progress that may do little to maneuver the needle for the Financial institution of Canada heading into its December assembly.”
- Hearth chat with Peter Routledge, Superintendent of Monetary Establishments in Toronto
- Ghislain Houle, chief monetary officer of Canadian Nationwide Railway will converse on the Desjardins Toronto Convention.
- Earnings: Alimentation Couche-Tard Inc., Agilent Applied sciences Inc., Keysight Applied sciences Inc.
- Is ‘lifelong renting’ changing into the brand new regular? Information suggests we’re heading that means
- Who’s Amancio Ortega, the Spanish billionaire shopping for up prime Canadian workplace towers?
- The within story of Fairfax Monetary’s even greater ‘Large Quick’
The current bout of punishing selloffs have traders questioning whether or not that is the top of the market get together. Investing professional Peter Hodson takes a have a look at have a look at 5 indicators of a market correction and the place we would stand now.
Learn on
McLister on mortgages
Need to study extra about mortgages? Mortgage strategist Robert McLister’s
Monetary Put up column
can assist navigate the complicated sector, from the newest developments to financing alternatives you gained’t wish to miss. Plus test his
mortgage price web page
for Canada’s lowest nationwide mortgage charges, up to date day by day.
Monetary Put up on YouTube
Go to the Monetary Put up’s
YouTube channel
for interviews with Canada’s main specialists in enterprise, economics, housing, the power sector and extra.
At the moment’s Posthaste was written by Pamela Heaven with extra reporting from Monetary Put up workers, The Canadian Press and Bloomberg.
Have a narrative concept, pitch, embargoed report, or a suggestion for this text? E mail us at
.
Bookmark our web site and help our journalism: Don’t miss the enterprise information it’s worthwhile to know — add financialpost.com to your bookmarks and join our newsletters right here
