US stock markets’ bull run is approaching its four-year anniversary with strong investment in artificial intelligence. As per analysts AI spending has been driving corporate profits and economic growth. However, the spotlight will be on just how sustainable the rally will be for investors amid questions over valuations and the pace of future AI-related spending.
The S&P 500 (.SPX) has been trading near record levels ahead of October 12, which marks four years since the benchmark index’s closing low of the current market cycle. The date serves as a milestone for the latest bull market, which has been supported in large part by enthusiasm around AI and expectations of its potential to boost productivity and corporate profits.
Based on the latest data for 2026 so far, technology shares have surged and helped drive the rally. The Nasdaq Composite has spiked over 17 percent year-to-date and outperformed the S&P 500 and the Dow Jones Industrial Average. The S&P 500 has gained over 14 percent, while the Dow has gained over 7 percent (so far this year). However analysts are eyeing elevated valuations, rising bond yields and the sustainability of AI-related spending going forward.
A possible correction in highly valued artificial intelligence (AI) stocks could bring foreign investors back to India, as the country offers a broad-based stock market and long-term growth opportunities, independent market analyst Ambareesh Baliga told ANI.
He said a possible fall in these valuations could redirect foreign investment towards India, which has seen significant overseas fund outflows over the past two years. “AI-related euphoria has caused valuations to skyrocket, and I think this bubble could burst sooner rather than later,” Baliga said, comparing the current enthusiasm around AI with the dotcom bubble. He said that although internet technology grew significantly after the dotcom bubble, many investments made during that period of excessive optimism disappeared. A similar correction in AI-related stocks could change the direction of global investment flows, he added.
AI-Led US Stock Market Bull Run Nears 4-Year Anniversary
