ECB Warns US Tech Slump Could Jeopardize Eurozone Stability

ECB researchers warn that a correction in US technology stocks could threaten euro-area financial stability, given European exposure to US tech equities and the historically linked performance of US and European markets. They note that AI-driven booms can inflate valuations and risk premia, so a US tech downturn could become a eurozone stability issue even if AI proves transformative, especially if broader market instability accompanies the slide.