Paul Tudor Jones Warns 2027 Could Pressure U.S. Stocks

Tudor Investment founder and Chief Investment Officer Paul Tudor Jones expects 2027 to challenge U.S. stocks as a series of big-tech and artificial intelligence offerings increases the supply of equities.

“2027 is going to be really, really challenging for the stock market,” Jones said Tuesday. He described the outlook for U.S. stock-market flows as potentially the weakest since 2002.

Jones said corporate buybacks and mergers and acquisitions had supported much of the four-year bull market by reducing the amount of stock available to investors. He expects that support to weaken as major AI-related offerings from Anthropic and OpenAI approach, following an offering that recently concluded at SpaceX.

Companies may also pursue more secondary offerings to raise money for AI development, Jones said. That additional issuance could put pressure on stocks by increasing the amount of equity available in the market.

The S&P 500 has more than doubled during the bull market, which has been driven by expectations that AI will transform the economy. Investors are also weighing higher inflation, elevated bond yields and a more hawkish Federal Reserve.

Jones compared the current environment with 1999, before the dot-com bubble burst. He said repeated offerings during the late 1990s through 2002 added supply and made it easier to be short.

“I’ll be short the whole year. There just — there’s little value,” Jones said.

The comments follow an earlier market preview that noted Jones was scheduled to discuss concerns about unchecked AI and its effect on markets.