‘Old Economy’ Stocks Poised to Pick Up Slack When AI Mania Eases
- Nasdaq 100 posts record outperformance against Russell 2000
- T Rowe Price, Citi & BofA bet on mild downturn, cyclical rally
A trader works on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
For all the frenzy around AI, there’s a quiet investor backlash building against the tech oligarchy’s recent stock market run.
T Rowe Price Group Inc., Bank of America Corp. and Citigroup Inc. are among those who reckon the hype around all things artificial intelligence is topping out. But they contend that’s not bad news for the market because so-called cyclicals — ‘old economy’ companies such as banking and mining — are primed for a rebound.