ECB economists warn that the market's pursuit of artificial intelligence will push technology stock valuations to the level of the internet bubble period, and stock market valuations may usher in a correction. Unlike in the early 21st century, if the market falls sharply, policymakers have limited room to cut interest rates or implement fiscal stimulus. The European Central Bank said that since Europe invests in America's “Big Seven Tech Giants” and the valuation of local European stocks is high, the risks facing Europe are particularly prominent.

ECB economists warn that the market's pursuit of artificial intelligence will push technology stock valuations to the level of the internet bubble period, and stock market valuations may usher in a correction. Unlike in the early 21st century, if the market falls sharply, policymakers have limited room to cut interest rates or implement fiscal stimulus. The European Central Bank said that since Europe invests in America's “Big Seven Tech Giants” and the valuation of local European stocks is high, the risks facing Europe are particularly prominent.