AI-driven market correction could push US into recession, global growth below 1%: Fitch

Fitch Ratings warned that a sharp AI-driven market correction could tip the US economy into recession and pull global growth to below 1% in 2027. In its September Global Economic Outlook, Fitch modeled a downside scenario with a 35% drop in US equity prices, a 15% fall in non-US equities, and an added confidence shock hitting US private investment. Fitch said this would likely mean the US enters recession, with GDP down 0.6% in 2027, while global growth nears stagnation in per-capita terms. Fitch noted the AI boom currently supports growth through rapid technology capex and higher equity wealth.