AI bubble fears rock Wall Street as returns fall short
AI bubble fears rock Wall Street as returns fall short
Leland Vittert Sat, October 31, 2026 at 6:31 AM UTC
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(NewsNation) — AI stocks are facing renewed pressure as markets react to uncertainty in the tech sector. Wall Street has gambled heavily on AI, hoping it will generate huge returns for investors; so far, it hasn't.
The result is that big tech companies are tumbling, and this is impacting all Americans. Intel, a company President Donald Trump and the federal government bought 10% into, Thursday lost nearly a third of its value.
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Former Commerce Secretary and former Kellogg CEO Carlos Gutierrez joins NewsNation’s Leland Vittert to discuss the growing role of artificial intelligence in the American economy.
Gutierrez believes that AI has been the driving force in the U.S. economy amidst much turmoil.
"Well, there's no question AI is driving the economy," Gutierrez said. "It's the last thing that is solid; that's keeping this going. The economy has withstood tariffs, price of oil, labor shortages in some areas, but AI has kept it going. We're very fortunate that we're living in the beginning of the AI era, data centers, and 401 k's"
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Gutierrez said that this administration is meddling in business at a level never seen before, calling it a business administration.
"There has been more meddling in business than ever before," Gutierrez said. "Look, tariffs is meddling in business because it's an attempt to control the market, to control the flow of capital. And then buying into Intel, charging NVIDIA for getting into China. Those are great things. If they are related to making sure we compete and win in AI, that's great."
One major complaint is that in today's economy it is no longer possible to attain the American Dream. Gutierrez believes it is still alive, but that it requires giving up a work-life balance.
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"Absolutely, it's alive," Gutierrez said. "I understand the current generations are maybe not as workaholic as my generation was, or they look for work-life balance. That's great, but not everyone does. There will always be room for the person who's hungry, who's ambitious, who wants to get ahead, and who's not really interested in work-life balance."
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Source: “AOL Money”
