Warnings bring new scrutiny
asserted
Warnings → bring → scrutiny
Renewed scrutiny of AI poses a risk for the stock market, some analysts said.
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analysts → renew → market
The stock market has barely blinked this year, shrugging off the Iran war, a surge of inflation and a flurry of new tariffs.
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market → blink → tariffs
The latest potential hiccup arrived in recent days as industry leaders sounded the alarm about artificial intelligence, a key driver of U.S. economic expansion and investor optimism, some analysts told ABC News.
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analysts → arrive → News
A flood of cash has poured into projects like data centers and advanced chips, delivering robust earnings and giving rise to optimism about what the future may hold, they said.
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they → pour → what
Potential new guardrails for the industry and rising interest rates could dampen investment and cool off some stocks, some analysts said.
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analysts → rise → stocks
Still, they added, a likely continuation of growth for AI and the wider economy may keep the major indexes rising anyway.
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continuation → add → indexes
"This moment of scrutiny is a test," Mike Loukas, CEO of TrueMark Investments, told ABC News.
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Loukas → tell → News
So far this year, the stock market has shown little sign of retreat.
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market → show → retreat
The Dow Jones Industrial Average has climbed nearly 8%, while the S&P 500 has jumped 11%.
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S&P → climb → ?
The tech-heavy Nasdaq has surged 13%.
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Nasdaq → surge → ?
Some top AI firms have fared even better.
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firms → fare → ?
Chip giant Nvidia, the most valuable company in the world as measured by market capitalization, has seen shares climb 18%.
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shares → measure → capitalization
Rival chipmaker Advanced Micro Devices has soared 155%.
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Devices → soar → ?
Those gains have extended beyond the AI sector to companies as far-flung as construction firms tasked with building data centers and equipment manufacturers supplying those construction firms, Ivan Feinseth, a market analyst at Tigress Financial, told ABC News.
"
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Feinseth → extend → News
It's the driving force for our economy right now," Feinseth said.
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Feinseth → drive → economy
"We're talking about hundreds of billions of dollars in investment in AI infrastructure."
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We → talk → infrastructure
AI investment has accounted for roughly a third of U.S. gross domestic product growth in 2026, according to a study released by ING Markets last month.
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investment → account → Markets
Some research, however, indicates AI remains challenging for companies to adopt.
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companies → indicate → ?
Roughly 95% of businesses invested in AI have failed to make money off of the technology, a MIT study last year found, estimating the combined amount spent by the firms is around $40 billion.
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amount → invest → firms
A series of grave warnings from top AI executives in recent days threatens to dampen growth in the sector as policymakers weigh regulation, some analysts told ABC News.
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analysts → threaten → News
Anthropic CEO Dario Amodei published a blog post alerting the public to "serious" risks.
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Amodei → publish → risks
Sam Altman, chief executive at rival firm OpenAI, in a post on X acknowledged AI could go "very badly."
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AI → acknowledge → X
The head of xAI, Elon Musk, echoed that view, referring to a post on X from 2014 in which he said AI could prove more dangerous than nuclear weapons.
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AI → echo → weapons
Critics on Capitol Hill have floated measures such as a "kill switch" available to shut off rogue AI, or vetting standards for AI models imposed by a federal watchdog.
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Critics → float → watchdog
It remains unclear whether any legislation will gain sufficient support in both chambers and win over President Donald Trump, who has called AI fears a "hoax."
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who → remain → fears
A possible measure could curtail some AI growth and dial back benefits for the wider stock market, Feinseth said.
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Feinseth → curtail → market
A recent rise in interest rates has also hiked the cost of corporate borrowing, which has fueled much of the AI investment boom, he cautioned.
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he → hike → boom
Regulation is a concern," Feinseth said, but he voiced optimism about continued resilience in the AI sector and the wider economy.
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he → say → sector
"I'm trying to differentiate between a concern and a catastrophe."
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I → try → concern
Loukas, of TrueMark Investments, voiced similar trepidation, but he acknowledged potential fallout if AI safety risks were to go unaddressed.
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risks → voice → fallout
"We all should be pretty sober about the perspective that there's a lot of unanswered questions about AI.
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We → be → AI
Will they get answered?
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they → answer → ?
Hopefully regulation can be balanced with innovation," Loukas said.
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Loukas → balance → innovation
The Aporia
