**[Opinion: AI Bubble "Late Stage" Warning Intensifies, U.S. Stocks May Face Over 30% Correction]** BlockBeats News, September 15 — Wall Street has recently issued warnings of "frenzied trading" and "irrational season," as concerns over the bursting of the AI bubble intensify. Capital Economics believes that multiple market indicators are now approaching historical bubble peak levels and predicts that the S&P 500 Index may start declining next year, ultimately falling at least 30% from its peak. The recent sharp divergence in the market has further fueled worries: on July 30, Microsoft's market value increased by $450 billion in a single day, while the next day, Apple's market value evaporated by $360 billion, and Amazon's rose by $388 billion. According to data from Acadian Asset Management, the degree of individual stock volatility in the U.S. stock market has reached the third-highest level in nearly 2,850 trading days, surpassed only by the vaccine-driven market in 2020 and the DeepSeek shock in 2025. Meanwhile, the Federal Reserve may raise interest rates by 25 basis points this Wednesday for the first time since July 2023. America predicts that the Fed will ultimately approve the rate hike by a vote of 10 to 2, with two officials likely opposing it. If the Fed further tightens policy, Capital Economics believes this will make the current AI-driven market more similar to the internet bubble around the year 2000. It also pointed out that capital expenditures by hyperscale cloud computing companies continue to soar, and it is expected that the free cash flow of the four major hyperscale cloud service providers will turn negative by 2027, further accumulating risks associated with the AI bubble. [Original Link]