AI Optimism Faces a Reality Check

The economy has stayed resilient through tariffs, inflation, geopolitical shocks, and rising interest rate concerns, but investors are still weighing whether the AI boom can keep powering markets without creating new vulnerabilities.Paul Lane and Marc Fandetti break down the latest warnings from the Bank for International Settlements, why inflation remains Kevin Warsh’s biggest test at the Federal Reserve, and how any shift in AI sentiment could threaten the market’s strongest growth story. They also discuss Meta’s push to sell excess AI compute capacity, why tech layoffs have not yet signaled broader labor market weakness, how Bob Pisani views the earnings strength behind the stock market, what the new Museum of American Finance brings to Boston, and why renewed trade uncertainty could complicate business planning.