Another week, and another ATH in a row. Fundamental data for the US economy posted during the previous week are showing that the inflation is obviously slowing down in the US, which implies that the Fed will most probably cut interest rates during the course of this year. This further boosted market optimism, where all US indexes gained during the week, while the S&P 500 reached its new ATH at level of 5.137 on Friday trading session. Tech companies and AI frenzy continue to strongly support this index. Since the beginning of this year, the index is moving within a strong overbought momentum, without any indication that it might slow down, let alone start a reversal.
There is an emerging number of analysts who are comparing the AI and tech frenzy with the period of late 90's, when the internet bubble burst, also noting that the rest of the market is completely disregarded. Certainly, there are differences between today's markets and the ones in the 90's, but the major topic with the current state of the market enthusiasm is that nobody knows where the tech nor AI is headed. As long as the market doesn't figure it out, it will move with the market premise – trend is your friend.
There is an emerging number of analysts who are comparing the AI and tech frenzy with the period of late 90's, when the internet bubble burst, also noting that the rest of the market is completely disregarded. Certainly, there are differences between today's markets and the ones in the 90's, but the major topic with the current state of the market enthusiasm is that nobody knows where the tech nor AI is headed. As long as the market doesn't figure it out, it will move with the market premise – trend is your friend.
