Back to Articles
SpaceX is Diving, the AI Trade is Stumbling: Now an Old Threat Looms

Australian Financial Review

ENRICHED

Details

Date Published
23 June 2026
Priority Score
1
Australian
Yes
Created
23 June 2026, 06:00 am

Authors (1)

Description

SpaceX shares plunged 16 per cent on Monday night as doubts about the AI trade keep growing. The prospect of rising interest rates could further hurt sentiment.

Summary

This market analysis examines growing investor skepticism regarding the commercial returns of artificial intelligence, drawing parallels to the historical concept of 'irrational exuberance.' The stumbling AI trade suggests a cooling of the hype cycle surrounding frontier AI companies and their valuations. While it touches on the economic stability of the AI sector, it does not directly address existential risks or safety governance frameworks. The article serves as a barometer for the financial sustainability of the rapid AI development race within the Australian and global investment landscape.

Body

MarketsChanticleerPrint articleJun 23, 2026 – 10.03amFederal Reserve chairman Alan Greenspan, whose death was announced on Monday night, was an icon of the financial world for many reasons. But in 1996, he gave markets a phrase that will live on forever: irrational exuberance.It’s a wonderfully elegant way to describe those periods when investors lose their heads. And we’re living through one now.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreChanticleerOpinionWall StreetInterest ratesSharemarketSpaceXAIAlan GreenspanFetching latest articles