AI-driven inflation is 2026's most overlooked risk, investors say

Global stock markets, riding high on AI euphoria at the start of 2026 may be disregarding one of the biggest threats that could spoil the party: a surge in inflation driven partly by the tech investment boom. U.S. stock indexes, where seven tech groups ​contributed half of all market earnings this year, made double-digit gains in 2025 to hit record highs as exuberance about AI and monetary easing also propelled European and ‌Asian equities to record peaks. Expectations for further rate cuts have buoyed bonds too, handing U.S. Treasury investors the best annual performance for five years as inflation retreated, although it remains above the Federal Reserve's average 2% target.