Is the AI Selloff Just the Start? Wall Street Economist Reacts

In this exclusive conversation, Peter Cardillo, Chief Market Economist at Spartan Capital Securities, breaks down the two market themes dominating Wall Street right now — Trump’s tariff strategy and the AI trade correction. Cardillo believes the tariff fear may be overdone, despite rising concern among investors. He explains why the 10% tariff hasn’t moved to 15%, why the newly‑imposed Section 122 tariffs could face Congressional approval, and why he expects tariff reductions down the road as political leverage fades. According to him, tariffs have helped keep inflation elevated and sticky, hitting US consumers through higher grocery prices. We also decode the AI trade pullback. After months of runaway rallies, markets are now reassessing whether massive AI spending will translate into real bottom‑line gains. Cardillo compares today’s AI correction to previous cycles like dot‑com, telecom and subprime, warning that markets always swing from extreme hype to sharp reality checks, before stabilising again.