"I think it's hard to say we're not in a bubble of some sort. The question always is, when is the bubble going to pop? Sorkin said. He added a moment later: I would argue to you the economy is being propped up almost artificially by the artificial intelligence boom. It will take a few years, Sorkin said, to know if the hundreds of billions of dollars being invested in AI is more of a gold rush or a sugar rush."
"Correspondent Lesley Stahl, a little earlier in the interview, asked Sorkin if he was scared markets were plowing towards a collapse akin to 1929. I'm anxious. I'm anxious that we are at prices that may not feel sustainable. And what I don't know is, we are either living through some kind of remarkable boom and part of that is artificial intelligence and technology and all of that or everything is overpriced. Stahl then followed up, Or we're reliving 1929, Sorkin responded, finishing her thought."
"It also comes amid a wild year on Wall Street. The three major indexes the S&P 500, the Nasdaq, and the Dow Jones have all climbed between 7% and 15% since the start of 2025. There have been some interesting moments, though. The markets took a big dive in early April when President Donald Trump announced his Liberation Day tariff plan; the markets have since rebounded, with the three major indexes all surging between 13% to 32% in the last six months."
Wall Street may be in a speculative bubble with valuations that feel unsustainable, driven largely by heavy investment in artificial intelligence. The economy appears almost artificially propped up by AI spending, and only years will reveal whether AI investment is a lasting boom or a transient sugar rush. Prices could mirror the excesses preceding the 1929 crash. Markets have been volatile in 2025, with major indexes rising 7–15% year-to-date, a sharp April decline after a tariff plan announcement, and recent rebounds of 13–32% amid tariff threats and policy uncertainty.
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