This interview with John Blank, Chief Equity Strategist and Economist, examines why the rally in AI momentum stocks has stalled, citing AI safety concerns, including recent calls by key AI developers for a slowdown, and worries about massive AI capital spending relative to revenue yield. Investors have already been selling AI stocks, and AI-related bonds have also sold off, though the October 2026 S&P 500 sector leaders are described as including Information Technology, Communication Services and Industrials. The discussion asks whether the AI trade could be fully taken out, what the economic impact could be, and how the hyperscalers Alphabet (GOOGL), Microsoft (MSFT) and Amazon (AMZN) fit into the picture.
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Keywords
artificial intelligencecloud computingS&P 500AI investment
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Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 725.61 |
| Change that session | +0.60% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 772.31 |
| Change that session | +0.34% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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