Good morning. The US stock market boom is making some people nervous, but perhaps the Seven Hottest Companies aren't that expensive after all. In addition, there is a big bet on market calm and the unstoppable cryptocurrency markets could score a win in London. Here's what people are talking about. — Sofía Horta and Costa
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There is a lot of controversy about whether the stock market in the United States It's so hectic that my colleagues Alexandra Semenova and Matt Turner delved into the data to see what the evidence suggests. Some of their charts may dispel fears of a bubble forming, namely one that shows an equal-weighted version of the S&P 500 has just reached a record high — an indication that the rally is not as concentrated as feared. JPMorgan's strategy team weighed in as well, noting that the so-called Magnificent Seven stocks — a group that includes Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla — are actually cheaper relative to the market than they were five years ago. Morgan Stanley's Michael Wilson, who has been a pessimistic voice on Wall Street, says the onus is now on improving earnings to support gains in stocks. Meanwhile, the team at Barclays says investors should consider selling US government bonds after an “excessive” rally. S&P 500 futures were down about 0.4% as I wrote, while Treasuries remained flat.
