Tech News
Is the AI bubble bursting? What the Fed's rate hike means for AI stocks in 2026
The Federal Reserve raised its target range for the federal funds rate to 3-3/4 to 4 percent on 16 September 2026 [s1], and officials see another increase possible this year [s2]. AI builders borrow to fund data centers, so higher rates raise their costs. Meta's Reality Labs posted a $19.19 billion operating loss in 2025 on $2.21 billion of revenue [s3].