Is AI stock too expensive as the US stock market shows cracks?
As of press time, Dow Jones futures fell 0.2%, Nasdaq futures surged 2.2%, and S&P 500 futures rose 0.74%. For companies that have not caught up with the AI trend, the situation is difficult.
The strong performance of a few technology stocks is driving the overall US stock market higher, which has been the case for most of this year.
Today is likely to be the same, as Nvidia's stunning performance has caused a pre-market surge of 28%, driving up AI-related concept stocks across the board.
Cracks in the Market
It's hard to imagine a clearer example of how much of an impact a small number of artificial intelligence concept stocks can have on the overall market sentiment.
But it may be masking cracks.
It's worth noting that Fitch Ratings recently downgraded the US debt rating to "negative watch".
Due to the impact of artificial intelligence, the Dow Jones Industrial Average may face its fifth consecutive day of decline, which may more accurately reflect the market sentiment.
So far, the index has only risen for four days in May.
As of press time, Dow futures fell 0.2%, Nasdaq futures surged 2.2%, and S&P 500 futures rose 0.74%.
Are AI Stocks Too Expensive?
The latest meeting minutes released by the Federal Reserve on Wednesday have left the future direction of interest rates uncertain, which is of no help to the situation.
However, this is no big deal for technology stocks. But soon, the word "bubble" may appear in AI.
Many obvious artificial intelligence concept stocks may already be too expensive.
But this technology has the potential to change the entire economic sector, which means that many lower-cost champion companies have yet to fully demonstrate themselves.
For companies that have not caught the artificial intelligence bandwagon, the situation is difficult.