Reported about 6 hours ago
The Federal Reserve has recently cut interest rates for the second consecutive time, raising concerns about the potential formation of a bubble in artificial intelligence stocks. Some analysts suggest that while AI valuations are stretched, further aggressive rate cuts could lead to rising prices. Historically, bubbles form when low interest rates drive excessive optimism, but they typically burst when rates increase. With the economic outlook uncertain, the future of AI stock valuations heavily depends on the Fed's monetary policy decisions.
Source: YAHOO