Nigam Arora: AI ‘Day of Reckoning’ Could Trigger 30–50% Stock Selloff
Arora warns rising AI-related debt and Fed rate hikes could spark a 30–50% market downturn; how equity momentum may collapse and ways investors can brace.
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What stands out
On Schwab Network, Nigam Arora argued the AI investment binge, increasingly financed with debt, could collide with a Fed that keeps hiking and trigger a 30 to 50 percent market selloff he calls a "day of reckoning." That observation matters because it recasts AI from a pure growth story into a leveraged trade tied to bond markets, datacenter spending, and concentrated bets among the MAG7. For investors this clip is a reminder that narrative-driven momentum can reverse fast when liquidity conditions change and leverage is in the background.