The outlook for Wall Street's top 15 investment banks was summed up by AI as “in jeopardy”, and Xiaomo warns of the risk of an AI bubble

Comparing news, the market outlook of the top 15 Wall Street investment banks for 2026 was summed up by AI as “in jeopardy.” Although stimulus plans such as the “Big and Beautiful Act” will drive the overall improvement of the market, investors face multiple challenges. J.P. Morgan warned that investment in the AI sector has soared from $150 billion in 2023 to more than $500 billion in 2026, and that the risk of a bubble is rising. Deutsche Bank and Goldman Sachs both pointed out that the fragility of the US labor market could trigger a recession. Bank of America expects the core inflation rate to remain at 2.8% by the end of 2026, far above the 2% target, which may affect the Fed's interest rate cut cycle. At the same time, under the K-type economic pattern, the financial situation of low-income households is particularly vulnerable, and consumers are clearly divided.