Veteran Wall Street analysts warned that the AI stock rally is reviving comparisons with the 1999 dot-com bubble. The Nasdaq has climbed more than 20% since its March 30 low.
The Philadelphia Semiconductor Index rose 70% from late March to Monday’s close. Steve Sosnick, chief strategist at Interactive Brokers, said investors who traded through 1999 and 2000 are seeing similarities in the market.
The rally has continued despite Middle East tensions, rising bond yields, inflationary pressures and weaker US labour market signals.
Read: US Stock Market Rally Defies War, Inflation Risks
Analyst Jason Goepfert said the S&P 500 recently hit a record while 5% of its components touched 52-week lows.
Similar market breadth signals appeared in July 1929, January 1973 and December 1999. Michael Burry wrote that the rally felt like the final months of the 1999-2000 bubble.
