IMF warns sky-high US stock valuations, especially S&P 500 and AI stocks, risk disorderly corrections that could spark economic chaos via wealth effect as households hold record 30% assets in equities.

Stocks risk 'disorderly corrections,' sparking wider economic chaos: IMF

Sky-high stock valuations are increasing the risk of 'disorderly corrections' that could rattle the economy, IMF warns The IMF warns that elevated stock valuations risk causing financial market turbulence. US stocks, especially the S&P 500, are highly valued, posing correction risks. High concentration in AI stocks and household exposure could impact the economy. The IMF is warning that elevated stock valuations are putting both financial markets and the global economy at risk of some turbulence...