Why are Some Market Pundits Talking About the 1929 Wall Street Crash?

"With all the chatter and commentary about the internet (or dot-com) bubble burst and even the great stock market crash of 1929, it's quite an unsettling time to be an investor in the markets, as the S&P nears new highs after a 2.3% gain for the month of October. For the tech-heavy Nasdaq 100, it was an even brighter month, with the index nearly rising 5% in a month."

"Is there an AI bubble? And if there is one, does it have to end with 1929- or 2000-esque pain? However, I do think Powell is right that AI is not the same thing as the internet bubble. Were companies monetizing the technology and using it to replace thousands (or even tens of thousands) at the workplace? Not to this magnitude. As such, I think investors should give Powell more credit, even as the Fed cuts rates into one of the biggest technological revolutions"

S&P 500 and Nasdaq 100 posted strong October gains, with the S&P up 2.3% and the Nasdaq 100 nearly 5%, raising concerns about parabolic movement and bubble talk. Prominent figures have labeled the market frothy, but others, including Fed chair Jerome Powell, argue current AI-driven advances differ from past bubbles because companies are monetizing AI and replacing workers at smaller scale. Continued rallies grounded in earnings rather than hype support longevity in AI-led markets. Recent earnings weakness at Meta, driven by heavy AI spending, contributed to a partial correction as Meta shares fell roughly 15%.

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