Elevated S&P 500 Valuations Could Signal Final Stage of AI-Driven Market Rally (opens in new tab)

The sharp rise in U.S. equity valuations may indicate that the artificial intelligence-fueled bull market is entering its most speculative phase, according to Capital Economics. In a note published Tuesday, Chief Economic Adviser John Higgins highlighted that the S&P 500’s cyclically adjusted price-to-earnings ratio (CAPE) has climbed more than 12 points since the beginning of 2023 and now...