ET Commentary

View: Tech stocks look unstoppable now, especially fuelled by the seven biggest AI-pool companies

View: Tech stocks look unstoppable now, especially fuelled by the seven biggest AI-pool companies
Agencies

Synopsis

Investor concerns over rising interest rates, slowing economic growth, sticky inflation and banking vulnerabilities have yielded to the buzz around AI since its potential became manifest last November. Technology companies were then in the middle of unprecedented layoffs to reverse the deep correction in stock prices of 2022. The tide has turned.

By , ET CONTRIBUTORS
6 mins read,
A worldwide stock market rally driven by concentrated bets on generative AI appears to be defying fundamentals. This could be the worst earnings season for US and European stocks since the pandemic, with a rising dollar affecting export performance, inflation squeezing margins and consumer spending weakening. Companies are still facing a tight labour market along with higher credit costs. A revival in profits could materialise next year as the

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