GLOBAL MARKETS WERE ALREADY FRAGILE . BIG AI BETS COULD BREAK THEM

What happened: Markets were already strained by wars, sovereign debt and trade tensions, and the AI trade that supported optimism is now showing cracks as investors grow nervous about resiliency. Key numbers: AI spending helped push stocks to records and expectations for 3 per cent global growth this year. Over US$2-trillion in market value was wiped from the Nasdaq 100 last month. Why it matters: Rising borrowing costs to multidecade highs and revived inflation pressure central banks, and some investors and economists say risks to the global economy are mounting. Coverage: 3 outlets in 24h

Markets were already strained by wars, sovereign debt and trade tensions, and the AI trade that supported optimism is now showing cracks as investors grow nervous about resiliency.

Rising borrowing costs to multidecade highs and revived inflation pressure central banks, and some investors and economists say risks to the global economy are mounting.