Artificial Intelligence Dominates Markets and Economy, But Spending Slowdown Poses Recession Risk

Artificial intelligence has become deeply embedded in US financial markets and economic growth, driving stock valuations and corporate investment at unprecedented scales—yet experts warn that any pullback in spending could prove devastating. Nearly $33 trillion in market value has been added to the S&P 500 Index since OpenAI's ChatGPT launch in late 2022, with a small cluster of AI-focused companies now representing over one-third of the benchmark. The Magnificent 7 technology stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—account for approximately 33.8% of S&P 500 weight, marking the highest single-cohort concentration in the index's modern history.