US stock market increasingly reliant on AI… rising interest rates and forced selling could deepen the correction

A growing share of U.S. economic and equity-market growth now hinges on AI spending, and rising interest rates combined with forced selling by leveraged investors could deepen any correction, financial educator Jaspreet Singh said in a November 9 discussion on Mario Nawfal's X account. Singh argued that without AI spending and growth the U.S. economy would already be in recession, warning that because gains are concentrated in a handful of AI companies, a wobble in that investment flow would hit both stocks and retirement accounts. He noted that unlike the dot-com bubble, parts of the AI industry are generating revenue and some firms are profitable, though the article also references Michael Burry's skepticism. The debate matters because it puts the sustainability of AI-linked capital flows at the center of market risk. What to watch next is whether AI spending slows and whether earnings can keep justifying the concentration.