European Central Bank (ECB) researchers Malin Andersson and Stefano Corradin, among others, published an article on the ECB's official blog on Monday, stating that as AI widely penetrates the economy, risks will spread from individual companies to the overall economy. Investors will demand higher risk premiums, and unless profit growth is sufficient to offset this, stock prices will face downward pressure. Furthermore, overly optimistic investors might push valuations above fundamentals, and once sentiment reverses, the magnitude of the correction could be more severe.

The researchers emphasized that Euro area households hold approximately 440 billion euros in exposure to US tech stocks, and insurance companies and pension funds also hold significant positions in the "tech Magnificent Seven." The impact of the US AI market will not stop at the US; a stock market collapse coupled with broader market turmoil would pose a financial stability threat to the Euro area. They also warned that policymakers currently have significantly less room to maneuver in response to market turmoil compared to when the dot-com bubble burst.