Trump or AI: What Breaks Markets First? [2026]

An ABC analysis considers sovereign debt concerns and a possible reversal of the AI investment boom as risks to financial markets, with interest rates and debt-financed infrastructure among the factors discussed.

• The ABC analysis identifies a sovereign debt crisis and a collapse in the technology boom as potential financial-market risks, and says interest rates could trigger either scenario.· 2 sources
• The article reports that US debt reached 126% of economic output and that annual interest costs on $US40 trillion of debt exceeded $US1 trillion.· 1 source
• NextDC shares fell 42% after Melbourne residents delayed a data-centre project; the analysis says project delays could slow AI deployment and pressure heavily indebted firms.· 2 sources