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Dec 27, 2025 12:10 PM

All-In On AI: What Happens If the Bubble Pops In 2026?

Apollo Global Management Inc.'s (NYSE:APO) 2026 outlook, spearheaded by chief economist Torsten Slok, gives a sharp warning: the U.S. economy has become dangerously reliant on a single engine of growth—artificial intelligence.

The SPY is up 18% on the year. See the chart and details here. 

As 2026 approaches, the S&P 500 has transformed into a concentrated bet. If the AI bubble were to pop, the fallout would likely cause widespread economic damage due to what Slok calls a “single point of failure.”

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“Single Point of Failure” 

The core of Apollo's concern is ...