IMF Warns of Asset Bubble Risks Amid AI-Fueled Rally

The IMF and major global banks warned investors about stretched stock valuations, pointing to AI sector exuberance and loose fiscal policies as potential triggers for market corrections. Analysts highlighted parallels with past tech-led rallies, urging a more measured risk approach as liquidity-driven momentum dominates equities. The IMF emphasized that sustained policy tightening and earnings normalization will be critical to prevent volatility spikes across global financial markets.