Artificial intelligence: Dangerous euphoria in AI stocks

Frankfurt, Dusseldorf For investors on Wall Street, one thing is clear: share prices will continue to rise. Because the market-wide S&P 500 has now officially entered a bull market. The US stock market is up more than 20 percent from its October low. With reference to history, stockbrokers see the crossing of the mark as a good sign, because bull markets – i.e. phases with continuously rising prices – last more than 20 months on average.

The return to a bull market this time has lasted as long as it had last in 1948. The most aggressive series of rate hikes by the Federal Reserve (Fed) in four decades had to be processed, as did a crisis in regional banks and fears of a recession.

Now, analysts like Bank of America’s Savita Subramanian are optimistic about the future: “We’re back in the bull market, which could help get investors excited about stocks again.”