The S&P 500 has seen three years of double-digit gains, driven by AI and quantum computing stocks. Market momentum has slowed recently amidst worries about interest rate cuts and growth expectations for AI companies. The index’s Shiller CAPE ratio has hit a level not seen since the dot-com bubble, raising concerns about overvaluation.

Tech companies have reported strong earnings, but ongoing hefty AI spending has spooked investors. The S&P 500 is little changed this year, leading to historical comparisons that suggest a potential decline. However, past instances of high valuations have not always led to long-lasting drops, offering hope for a recovery in the future.

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Read more at Nasdaq: The Stock Market Is Doing Something Witnessed Only 2 Times in 154 Years — and History Is Crystal Clear About What’s to Come.