From CNBC:

Wall Street is not in a bubble despite the heavy concentration on expensive AI-focused tech stocks. S&P 500 has seen gains concentrated among top tech companies. The U.S. Federal Reserve may cut interest rates in June, potentially benefiting high-growth tech stocks. UBS draws parallels with the late 1990s tech bubble, but argues there’s no bubble ready to pop.

Top 10 S&P 500 companies account for 34% of total market cap, TS Lombard notes. Stock market breadth has improved due to Fed’s dovish pivot and economic growth, with European and Japanese indexes hitting all-time highs. Equity gains are justified by fundamentals, but the AI-driven bull run lacks the liquidity and leverage needed to inflate a bubble.

UBS warns that the absence of a bubble doesn’t guarantee continued market growth. Productivity growth today is different from the 1990s, with stagnant globalization and a late-cycle economy. Real disposable income growth is weak, and variables need to improve for the bull run to persist.



Read more: Stock market bubble? Analysts explain why they’re not worried