Tech Stocks Keep Driving the Market Rally. Are We in Dot-Com Bubble 2.0?
US stocks have defied expectations to rally in 2023. It raises concerns about a potential repeat of the dot-com bubble, and this time primarily because of the AI boom.
Analysts at Bank of America categorized the rise in AI stocks as a "baby bubble." Bubbles are "always started by easy money," they wrote, and "ended by rate hikes."
"It's not a bubble," Chris Harvey from Wells Fargo said. He argues valuations and earnings expectations for AI today are more realistic than they were for early internet companies in the late 1990s.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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151850153 : If recent upward trend continues, the S&P 500 index would surpass the previous peak within several months.