Report · Reuters · October 8, 2025
Bank of England warns of 'sharp correction' in markets if mood sours on AI or Fed
The BoE warned that valuations of AI-focused tech firms looked stretched and that markets were exposed to a sudden shift in sentiment.
- Authors
- David Milliken, Phoebe Seers
- On behalf of
Reuters
- Quotes
- Bank of England, Financial Policy Committee · Central bank of the United Kingdom
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- finance.yahoo.comSyndicated copy: Reuters (syndication: Yahoo Finance)
finance.yahoo.com
Bank of England warns of 'sharp correction' in markets if mood sours on AI or Fed
The Bank of England's Financial Policy Committee said equity valuations, especially for AI-focused firms, look stretched and the risk of a sharp market correction has increased.
Quotes
„The risk of a sharp market correction has increased.”„…leaves markets particularly exposed should expectations around the impact of AI become less optimistic.”What the index did
Nasdaq-100, level on the day of the warning: 25,137 (10/08/2025)
| 1 mo. after the warning | 3 mo. after the warning | 6 mo. after the warning | 12 mo. after the warning | to date | Largest drop within 12 months |
|---|---|---|---|---|---|
| +1.9% | +1.5% | −0.9% | +22.2% | +7.4% | −8.7% |