Tom Essaye Warns AI-Fueled S&P 500 Rally Risks Dot-Com Style Downside
Sevens Report’s Essaye flags downside risks tied to semiconductors
Bank of America Warns S&P 500 Tops Dot-Com Bubble on AI Stock Surge
Bank of America strategists warn that the S&P 500 has surpassed dot-com era valuations, fueled by an AI-driven surge in tech leaders. Industry analysts echo similar concerns, including Tom Essaye of Sevens Report Research, who points to semiconductor indices as a key risk factor.
Essaye cautioned in remarks cited by Business Insider that if economic resilience falters, the sector could drag the broader market lower. His outlook: “considerable downside” in coming quarters, especially if inflation reaccelerates or geopolitical tensions disrupt supply chains.
Adding to the vulnerability, passive investing trends may be amplifying bubbles. With index funds funneling capital into overvalued leaders, market corrections could be sharper when momentum unwinds.
Also, click here to view the full article on Webpronews.com published on August 15th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.
If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.
To strengthen your market knowledge take a free trial of The Sevens Report.
Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
