Michael Hartnett: Similarities between the current US stock market and the foam in 2000

According to Michael Hartnett, chief investment strategist of Bank of America, the current US stock market is highly similar to the top stage of the Internet foam in 2000. The S&P 500 index hit a historic high in May, but only 20 constituent stocks simultaneously hit new highs, concentrated in the AI and semiconductor sectors. In May, Micron Technology rose 87.8%, SK Hynix rose 81%, AMD Semiconductor rose 45.6%, and Samsung Electronics rose 43%. The Nasdaq rose 25% from April to May, achieving its best performance in over 20 years, but the market breadth indicator weakened. Hartnett suggests increasing long-term bonds and defensive allocation to address potential pullback risks.