Singapore’s Central Bank Joins Chorus of Tech Stock Warnings

Singapore’s central bank is the latest addition to a global chorus flagging the risk of the technology sector’s elevated stock valuations.

“Some equity markets are seeing relatively stretched valuations, particularly in the technology and artificial intelligence segments,” the Monetary Authority of Singapore said in its annual Financial Stability Review released on Wednesday. “A retrenchment of optimism in AI’s ability to generate sufficient future returns may lead to sharp corrections in the broader equity market and further defaults in the private credit market.”

The warning comes as policymakers and Wall Street executives have become increasingly vocal about their concerns over the ...