Is the stock market preparing for the next AI wave?
• US stock indexes continue to be supported by strong AI-led momentum, though investors are increasingly debating the sustainability of current valuations. • Market concentration in a few AI-driven stocks has become the defining narrative of the current financial cycle, raising concerns about a potential bubble. • The situation matters because elevated valuations may shift the market's trajectory as the development of AI technology typically follows a non-linear path.
cmcmarkets.com