Reasons behind recent stock market correction; why Fed is reconsidering its information disclosure practices

研报英文原文证据摘录

Reasons behind recent stock market correction; why Fed is reconsidering its information disclosure practices

Nomura | Richard Koo 22 July 2026

Technological innovations and their impact on earnings do not necessarily align

with share prices

Developments in AI-related stocks are another factor behind the recent decline in equity

markets. I believe AI represents an enormous advance for humanity that can rightly be

described as a second Industrial Revolution. Before AI, advances in science and

technology enabled tasks performed “below the neck” to be carried out more accurately,

rapidly, and powerfully than by humans. In contrast, AI exponentially increases the

efficiency of tasks performed above the neck.

But whether this huge potential can justify recent stock prices is another issue entirely.

The people trading these stocks are not the people engaged in AI sales activities or the

development of related technologies.

As seen during the dot-com bubble 25 years ago, this could lead to a situation in which

share prices surge (at a time when the technology is making steady advances) and

subsequently undergo a major correction.

I readily acknowledge my own lack of knowledge when it comes to IT and will therefore

refrain from commenting on the technological potential of this revolution. However, I think it

is important to keep in mind that actual technological innovations and their impact on

corporate earnings do not always align with movements in a given company’s share price.

Data center investments provide significant boost to economies of Japan, Taiwan

and South Korea

From a macroeconomic perspective, demand for the construction of data centers and

other infrastructure underpinning the AI revolution has become a major support for the

US and East Asian economies.