Bubble Angst Belied by Big-Tech Weaklings, Broader S&P 500 Gains
- Diverging Magnificent Seven shares suggest froth subsiding
- Stocks of more companies have joined in the market advance
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US stocks’ torrid climb to start 2024 is evoking worrisome comparisons with past boom-and-bust cycles on Wall Street, sparking debate over the risk that the market is overheating.
There’s ample reason to wonder whether shares have advanced at an unsustainable pace: The S&P 500 Index has closed at record highs 16 times this year, accounting for about a third of all trading days; AI darling Nvidia Corp. has soared nearly 80%, adding roughly $1 trillion in market value, even after sliding Friday along with other tech shares; and speculative areas like Bitcoin have surged.