Major U.S. stock indices reach all-time highs as AI advancements fuel market optimism despite concerns of overheating.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite closed at record highs on May 27, extending a 2026 rally driven by artificial intelligence growth. Analysts project AI could contribute $15.7 trillion to the global economy by 2030, underpinning investor enthusiasm.
The surge echoes the late-1990s dot-com boom, when former Fed Chair Alan Greenspan warned of “irrational exuberance” in a 1996 speech. While markets eventually corrected, current valuations raise similar concerns about rapid, unsustainable gains.
Despite a March pullback, the indices have rebounded sharply, with technology stocks leading the charge. The rally’s pace has sparked debate over whether the gains are justified by fundamentals or speculative momentum.