Losses spread globally as investors questioned soaring valuations and spending on AI infrastructure

All the vampires walkin’ through the valley\

Move west down Ventura Blvd\

And all the bad boys are standing in the shadows\

All the good girls are home with broken hearts\

And I’m free, I’m free fallin’

    • supersquirrel@sopuli.xyzOP
      7·
      14 hours ago

      All three major US indices have hit record highs this year, riding off a rush of funding to support AI technology and infrastructure. Nasdaq is up 10% for the year, while the Dow jumped 6% so far this year, breaching past 51,000 points, and the S&P 500 is up 7.3%.

      But some economists have warned that the influx of AI spending is a bubble reminiscent of the dot-com bubble that burst in the early 2000s. Seven tech companies make up 30% of the S&P 500’s value.

      Did you not read the article?

      • UnderpantsWeevil@lemmy.world
        6·
        11 hours ago

        some economists have warned

        We’ve been getting this warning for years. Over the same time, the value of these stocks have not diminished.

        Did you not read the article?

        It’s the exact same article that gets printed twice a month going on 40 years.

        I would bet even money that it is itself AI generated, at this point.

        • supersquirrel@sopuli.xyzOP
          3·
          11 hours ago

          There is little evidence that a differentiating factor between an economic bubble and genuine economic growth surrounded by a halo of hype is the duration that the growth can sustain itself.

          What determines whether a bubble pops or not is not logic but rather belief, there are numerous documented instances of bubbles that were loudly talked about and systematically ignored by those in power that sustained themselves for many years before everything came crashing down.

          This isn’t magic, the bubbles in reality pop much earlier and usually multiple times once the numbers don’t add up, but the costs are obscured and offloaded to the environments around the bubble so that the entire collective pie diminshes but the relative power and perception of value in the bubble is retained right up until a more systematic collapse occurs.

          No this is not the same article, there is a diverse variety of reporting on the financial scam that AI embodies multidimensionally.