The frenzied rally in artificial intelligence stocks is losing steam, and some market watchers say the moment rhymes uncomfortably with the run-up to the dot-com crash of the early 2000s.
According to The Motley Fool, the stock market is now doing something last seen before that crash — a warning it says investors should take seriously. As a reminder of the stakes, the outlet notes that the S&P 500 sank as much as 48% between January 2000 and July 2002, the stretch when the internet bubble deflated.
The cooling AI trade is already reshaping where global money flows. According to Moneycontrol, India's stock market is regaining the interest of international investors precisely as the AI theme loses momentum. Indian equities have been among the world's worst performers this year, but Moneycontrol reports the tide is beginning to turn.
Several local factors are helping. The rupee has started to stabilize after touching a record low, and rising oil prices — which had hammered the shares of Indian refiners — are part of the shifting backdrop Moneycontrol describes.
The two threads point in the same direction: money that piled into a narrow set of AI winners appears to be looking elsewhere, and analysts are openly drawing parallels to a past bubble.
Why it matters: if the AI rally is echoing pre-crash patterns, the swing could ripple far beyond a handful of tech names — reshaping retirement accounts, index funds, and which markets around the world attract the next wave of investment.