[Bank of England Warns: AI Stock Bubble May Trigger a "Sudden Correction" in Global Markets] BlockBeats reported on October 8 that the Bank of England has warned that the soaring valuations of artificial intelligence companies, reaching levels comparable to the dot-com bubble era, are heightening the risk of a "sudden correction" in global financial markets. The Bank of England pointed out that recent defaults in the U.S. auto loan market have exacerbated the risk of market reversals, stating that these events "validate some of the risks inherent in market-based financial systems that the central bank has consistently emphasized." Other risks include escalating political pressure on the Federal Reserve—which "could lead to a sharp repricing of dollar-denominated assets"—as well as uncertainties stemming from political deadlocks in France and Japan, which could also disrupt debt markets. The Bank of England noted that multiple indicators suggest "stock market valuations appear overstretched, particularly for technology companies focused on artificial intelligence." "This situation, combined with the rising concentration of market index components, makes the stock market particularly vulnerable if expectations about AI's impact turn pessimistic." This marks the Bank of England's clearest warning to date about the potential bursting of an AI-driven market bubble. In its Financial Stability Report released in July, the central bank had only mentioned artificial intelligence from the perspective of risks associated with financial institutions adopting AI technologies. (Jin10)