ECB: US Stock AI Rally Pullback Could Have Severe Consequences for Eurozone

The European Central Bank warned that risks of a sharp correction in US tech stocks are building, and the eurozone will find it difficult to remain insulated through investors' cross-border holdings, market sentiment linkages, and real economy transmission. Constrained by currently low interest rate levels and tight fiscal conditions, European policymakers' buffer space to respond to shocks has narrowed significantly compared with the dot-com bubble era.