(Bloomberg) — 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.
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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.
Yet there are signs that the strength, based in large part on the economy’s resilience and robust corporate earnings, hasn’t turned into a speculative frenzy.
Several of the so-called Magnificent Seven stocks have sputtered, showing that investors aren’t throwing money at the market with abandon. The muted reaction to…
