Beyond the AI Euphoria Is a Worrying Stock Signal on US Growth
- There are cracks underneath the surface of the market: Miskin
- Stocks are sniffing out something data isn’t showing: Maley
A trader works on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Look past the exuberance for all things artificial intelligence and you find a stock market backdrop where confidence in American growth is far less robust than it seems.
It’s in the dispiriting performance of banks and industrial companies, barely eking out gains in 2023 while the likes of Tesla Inc. and Nvidia Corp. double and triple. Pessimism is visible in versions of major benchmarks that pare down the influence of megacaps, such as the equal-weight S&P 500, up a relatively paltry 4% so far this year.