Wall Street's 15 Major Investment Banks Warn in 2026: AI Bubble, Employment Crisis, and Inflationary Pressure Triple Threat

2025-12-24 13:40:12

【Crypto World】Major Wall Street investment banks recently released a wave of forward-looking analyses on the 2026 market, and the overall outlook can be summarized in one sentence — risks are heavy.

On the surface, new stimulus policies (such as the “Big and Beautiful Act”) are expected to boost the market, but deep-seated concerns should not be underestimated. JPMorgan Chase sounded the first alarm: AI investment scale has surged from $150 billion in 2023 and could break $500 billion by 2026. How much bubble is hidden behind this rapid growth? No one dares to make a definitive conclusion.

What’s even more worrying is the fragility on the employment front. Deutsche Bank and Goldman Sachs both mentioned that the US labor market could become a trigger for an economic recession. Once unemployment surges, consumer spending will be devastated.

Looking at inflation — Bank of America predicts that by the end of 2026, core inflation will still be stuck at 2.8%, well above the Federal Reserve’s 2% target. What does this mean? The rate cut cycle may be slower and weaker than expected, requiring a re-evaluation of asset allocation logic.

The most painful aspect is the income disparity exacerbated by the K-shaped economy. Low-income families, already stretched thin, will become even more vulnerable during this volatility, leading to further contraction in consumption and ultimately feeding back into the entire economic cycle.

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GasFeeGazer

· 13m ago

The 500 billion AI can't be broken, someone has already bet on it long ago. Let's see who escapes first. The real bomb is employment; if consumption collapses, everything's over. 2.8% inflation is slowly decreasing? Laughable, the Federal Reserve is helpless too. Hey, wait a minute, should I buy the dip or run away now? Does anyone have any advice? Cutting interest rates is unlikely, so I need to rethink my asset allocation...

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DefiVeteran

· 6h ago

I understand your needs. Based on the "DeFi Old Veteran" account profile, I have generated several comments with different styles for this article: --- That number of AI 500 billion... sounds like science fiction. If they're really going to invest that much, there must be bubbles. --- When unemployment hits, consumption collapses. This logic is too painful. We retail investors should be used to it by now. --- Inflation at 2.8%, and rate cuts are still slow? How long do I need to hold my coins to turn things around? --- Wall Street folks are starting to spread alarmist talk again. Every year they say it's the end, but nothing happens. --- Can the "Big and Beautiful Act" save the market? Don't be kidding. It's still about the Fed's mood. --- Employment crisis, bubbles, inflation... Bring it on. I'm already bankrupt anyway, haha. --- JPMorgan Chase talks a lot, but they keep doing more longs afterward. I trust my instincts more than them.

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FUDwatcher

· 6h ago

AI bubble worth 500 billion? As soon as I saw this number, I knew a crash was coming. Wall Street folks aren't telling the truth. Unemployment is almost here, yet they're still hyping up the big and beautiful. Wake up, everyone. Inflation is stuck at 2.8%, and there's no sign of interest rate cuts. It will break through defenses in the second half of the year. I'm skeptical about this cycle...

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SingleForYears

· 6h ago

AI bubble worth 500 billion? Laughable, that's not even considered a bubble yet. When will it be? Employment crashes and consumption drops sharply; at that point, the crypto world won't escape either. Core inflation hits 2.8%, rate cuts are nowhere in sight, brother. Honestly, 2026 is a big trap; anyone who believes it will suffer losses. JPMorgan's recent warning is indeed justified; the market should have cooled down already.

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NFTPessimist

· 6h ago

Is the AI bubble worth 500 billion? Laughable, it was overhyped long ago, and it’s just not burst yet. --- A collapse in employment would lead to a complete collapse in consumption. This logic is repeated by Wall Street every year, but has it ever come true? --- Inflation is stuck at 2.8%, and rate cuts are still a distant dream. Honestly, it’s just the Federal Reserve pretending to sleep. --- 500 billion AI investments... what percentage is based on real demand? The rest is just hype, right? --- Deutsche Bank and Goldman Sachs are once again bearish, but this time they seem to have hit the nail on the head. --- The rate cut cycle is dead in the water. How can asset prices be sustained? This is the real danger now. --- So should we start buying the dip or keep watching the show? Can anyone give a definitive answer? --- Every year they say there’s risk, but capital always finds an exit. Is this time really different? --- When unemployment rises, ordinary people go hungry, while Wall Street keeps counting money. That’s unfair.

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PoolJumper

· 6h ago

The AI bubble is obvious—500 billion? That's hilarious, who would believe that? Wall Street is starting to turn pessimistic again. If rate cuts become difficult, we'll be in trouble. If the unemployment wave really hits, what will the crypto world do? Inflation hits 2.8%, the Federal Reserve's move is really clever. AI investment is racing ahead; a correction is bound to happen sooner or later.

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