Investor enthusiasm for artificial intelligence investments can drive share-price gains for companies that have AI-related businesses or products.
high
market_dynamics
Describes how sector-specific investor interest can affect equity valuations.
Concerns that large inflows of capital into a particular sector can create an asset-price bubble tend to increase market volatility and investor uncertainty.
high
market_risk
Explains a general relationship between rapid sectoral investment, bubble concerns, and volatility.
Uncertainty about future central bank interest-rate decisions is associated with increased short-term swings in stock prices and higher market volatility.
high
market_dynamics
Links policy-rate uncertainty to equity-market behavior.
Central bank officials commonly resist cutting a benchmark interest rate when inflation is persistently above the central bank's stated inflation target because lowering rates can be inflationary.
high
monetary_policy
Describes a general policy preference relating inflation levels to rate-cut decisions.