World Business Report US top banker warns of potential risk of stock market decline
Oct 9, 2025
The head of America's largest bank warns that U.S. stock markets are at risk of a significant decline, suggesting a one-third chance of a correction. In a contrasting landscape, China tightens rare earth export controls, emphasizing its geopolitical leverage. Meanwhile, silver prices soar, reaching over $50 an ounce, marking their highest level in decades. Experts debate whether current tech valuations echo the dot-com bubble, highlighting the importance of diversification for investors.
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High Probability Of Market Correction
- Jamie Dimon estimates a roughly one-third chance of a major US market correction due to elevated risk perception.
- He warns markets likely underprice that probability and timing is uncertain from months to years.
Uncertainty Drives Market Vulnerability
- Dimon links the elevated correction risk to broad uncertainty across geopolitics, fiscal policy and remilitarisation.
- He argues that overall uncertainty should be higher in investors' minds than normal.
Be Pragmatic About AI Opportunities
- Rajiv Chaudhry urges pragmatic openness to AI while recognising new risks that must be understood.
- He cautions against ignoring the technology's upside while monitoring valuation excesses.