Lates News

Anxiety around the threat of artificial intelligence is on the rise, and a sudden shake in private credit betting has caused banks and asset management companies' stock prices to plummet once again. The KBW Bank Index fell 4.7% on Friday, dragging the sector to its lowest level since December last year and is set to record its worst month since March. Banks, payment service providers, and asset management companies have been hit in succession this month, with the most notable being the issues in the new generation of artificial intelligence applications and the private credit sector. Block's cutting of nearly half of its staff on Thursday evening intensified market concerns about the potential disruption of the economy by artificial intelligence. The widening credit spread is gaining support on Wall Street as the collapse of the UK mortgage firm MFS exacerbates concerns about rising defaults in the opaque private lending sector for banks. Analyst Herman Chan said, "Banks are entering a more volatile period with many unknowns around the pace of artificial intelligence applications and disruption. Rising government bond yields and widening credit spreads indicate that the market is in a risk-off state."