High stock valuations sparking investor worries about market bubble

Core Viewpoint - Optimism surrounding artificial intelligence (AI) has significantly increased the valuations of major technology companies such as Nvidia, Microsoft, and Oracle, contributing to record highs in U.S. equity indices like the S&P 500 and Nasdaq [1][2] Market Performance - The S&P 500 and Nasdaq have risen approximately 15% and 19% year-to-date, respectively, while the Dow has gained about 10% [2] - The recent rally has raised concerns about a potential market bubble and subsequent corrections, prompting warnings from various financial leaders [2] Expert Opinions - The International Monetary Fund (IMF) chief Kristalina Georgieva and JPMorgan Chase CEO Jamie Dimon have expressed concerns about the risks of significant corrections in the stock market [2] - Goldman Sachs analysts, however, argue that the current market rally is driven by fundamental growth rather than irrational speculation, indicating that it is not yet a bubble [1][2] - They also highlight the importance of diversification due to high market concentration and increased competition in the AI sector [2]