AI honeymoon is over?

 Artificial intelligence single-handly boosted the economy in 2025. AI stocks including Google, Nvidia, and CoreWeave were just a few stocks that ended up booming in 2025 due to AI. As 2026 comes around people are looking for the next stock to make them rich and the Deutsche Bank warns the public that the AI honeymoon will be coming to an end in. 

A big reason why is due to the fact that AI has not proved to be effectivly cheaper than human workers in many work settings. This is leading to a lack of ROI and cause stockholders to be cautious where they are putting their money. It is still very possible that AI will take over some jobs in the future but the rapid change that was expected has not happened yet leading people to believe it still needs some time. 

Next, AI data centers are already at capacity and some companies are scrambling just to find the money to support spending that is over 15 billion. Investors are also seeing the lack of infastutcure to support the growth of AI currently which could send some companies back to square one. 

Finally, if a pullback of investment in AI occurs some analysts warn that it could trigger financial market correction that would drop global growth. If this happens it opens that door for competitors like China to get ahead of the United States in the AI race which would prove detrimental to the U.S. in the future. 

https://www.investing.com/news/stock-market-news/why-deutsche-bank-says-the-ai-honeymoon-is-over-4455029

Trump Walks Back Tariffs on European Countries

In an interview with CNBC at the World Economic Forum in Davos, Switzerland, President Trump said he'd walked back tariffs on eight European countries. He's been threatening tariffs recently on countries that opposed his pursuit of Greenland, but has backtracked on some of those because he says he has the concept of a deal. 

This caused the markets to rise tremendously in response to the news from Switzerland. The Dow Jones, NASDAQ, and S&P 500 all rallied big on Thursday, recovering from dips earlier in the week. The circumstance is still very volatile, and we'll have to wait and see what happens with Greenland and the effects it will have on the economy.

https://www.cnbc.com/2026/01/22/trump-tariffs-greenland-europe-deal-taco-trade-sell-america.html 

AI’s Productivity Paradox

Artificial intelligence is often praised for making work faster, easier and better. However, at the task level, this is partly true. Recent studies show that AI can help people complete certain tasks much more quickly. However, when economists look at productivity across companies or the economy as a whole, the gains are surprisingly small. This gap is known as the AI productivity paradox.

One reason is that AI helps less experienced workers more than experts. While beginners benefit from the AI's guidance and structure, experienced workers often spend extra time checking and fixing AI output. Also faster individual task, do not always improve overall results.

AI adoption is another limitation. Most firms are still experimenting, and the time savings per worker are relatively small. As a result, AI’s impact has not yet shown up in broader productivity data.

Overall, AI is changing how people work, but real productivity growth will depend on how well organizations adapt their processes around it.

https://www.forbes.com/sites/guneyyildiz/2026/01/20/ai-productivitys-4-trillion-question-hype-hope-and-hard-data/