- ORIGINAL NEWS
Stock market bubble? Analysts explain why they’re not worried
- SUMMARY
Despite strong gains in the stock market, experts don’t believe it’s a bubble yet.
While the gains are concentrated in a few large tech companies like Nvidia, the earnings and performance of these companies justify the rally.
Unlike the dotcom bubble of the late 1990s, there’s less speculation and leverage in the market.
However, concerns remain about the sustainability of the bull market, as economic growth is slowing and productivity is not as strong as it was in the 1990s.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“The S&P 500 has climbed for 16 of the last 18 weeks and closed at a new all-time high on Friday.”
“The U.S. Federal Reserve, meanwhile, is expected to begin cutting interest rates in June, potentially supplying a further boon to high-growth tech stocks.”
Negative
“The S&P 500 has climbed for 16 of the last 18 weeks and notched a new all-time closing high on Friday, but the gains have been heavily concentrated among the so-called “Magnificent 7” tech behemoths, led by skyrocketing Nvidia.”
“The bad news?The absence of a bubble does not necessarily imply that the market will continue to rise, UBS pointed out, with Baweja noting that productivity growth looks “nothing like it did in the 1990s.””