AI-fueled stock market rally is like the dot-com era: David Rosenberg

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The AI-fueled stock market rally is 'overextended' and similar to the dot-com era mania, veteran economist David Rosenberg warns

The stock market's rally, fronted by the artificial intelligence frenzy, will be short-lived like the dot-com era boom, David Rosenberg said.

The veteran economist, who is the president and founder of Rosenberg Research, said the current surge in stocks is overextended. Equities have been performing well despite a high-interest-rate environment, tightening credit conditions, and ongoing debt ceiling negotiations. The S&P 500 earlier this month hit 4,200 for the first time since August, and is up 9.6% since the start of the year. on Thursday."If you look at the six-month chart of the Nasdaq 100, you have to be blind not to see that, 'Okay, this is actually looks very weird, and it's way overextended.'"The tech-heavy Nasdaq Composite closed 1.7% higher on Thursday, fueled by chipmaker Nvidia's blockbuster earnings.

 

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