Ratings agency Fitch highlights AI boom and market correction as major global credit risks. Unprecedented AI spending and soaring valuations may outpace uncertain future returns, Fitch stated. Geopolitical tensions, particularly the U.S.-Iran conflict, add further significant challenges to the credit environment. Emerging markets face additional pressure from rising costs and climate-related shocks. Policymakers and investors navigate increasing dependence on AI investment amid global uncertainties.

The US credit outlook is increasingly levered to AI investment confidence, while consumer-facing sectors and private credit markets face mounting headwinds

Fitch says a possible AI market correction is emerging as a major global credit risk, citing stretched valuations and $182bn of Big Tech bonds.