Right, a stock market crash would be very likely given how concentrated it is on the Mag-7 (or whatever Big Tech is called now.) The reduced consumer spending due to the reduced "wealth effect" makes sense, and it could worsen the downward spiral.

But it seems to me that if a stock market wipeout triggers a recession, it's because of deeper, pre-existing problems with the broader economy (inflation, jobs, war) and the stock market (concentration, unrealistic valuations) that are unrelated to the AI spending.