Is the Tech Boom Ending? Why Experts Predict a Major Stock Market Drop by 2027

New York, Tuesday, 15 September 2026.
A major macroeconomic research firm, Capital Economics, warns that the artificial intelligence boom has entered its late stages, setting up the stock market for a severe correction. Analysts forecast that the S&P 500 could fall by up to 30% by 2027 as overstretched valuations, soaring corporate spending, and lagging profit returns reach a breaking point. With global AI investments projected to reach $1 trillion in 2026, technology capital expenditure as a share of U.S. gross domestic product has now surpassed levels seen at the peak of the dot-com bubble. Although strong underlying earnings may prevent a crash as deep as the 2000 tech bust, financial experts warn that current market expectations remain dangerously unsustainable.