Why Today’s Stock Market Rally Differs From Dot-Com Bubble
Current market resilience stems from strong earnings growth and AI-driven productivity gains, creating fundamental differences from the speculative dot-com era. Wall Street expects 95% of S&P 500 companies to grow earnings next year.
While current market enthusiasm draws comparisons to the late 1990s dot-com bubble, fundamental differences in earnings growth, valuation metrics, and underlying economic conditions suggest this stock market rally rests on more sustainable foundations. Despite facing multiple headwinds including labor market shifts and geopolitical tensions, the market’s resilience reflects genuine corporate profitability rather than mere speculation.
