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Markets hit record highs as ‘Fomo’ infects investors

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AI fever labelled ‘dotcom on steroids’ as global equities surge

Stocks have struck record highs this week while borrowing spreads for US companies have shrunk to their tightest this century, as investors warn markets are “priced for perfection” despite mounting risks. US equities have rebounded from their bruising trade war sell-off earlier this year in a run that has propelled tech giants Nvidia and Alphabet to multitrillion-dollar valuations, but is now sweeping up stocks of all shapes and sizes.  The blue-chip S&P 500 and tech-heavy Nasdaq Composite — up 14 per cent and 17 per cent, respectively, this year — set fresh record highs on Friday. The small-cap Russell 2000 also topped its November 2024 peak after the Federal Reserve cut interest rates on Wednesday.

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