Economy

The AI ​​Race
“Big Short” Profile: AI Rally Resembles the Time Before the DoT Crash

“The Big Short” profile Michael Burry warns that the AI ​​boom in the stock market is starting to resemble the end of the dot-com bubble, writes CNBC.

“It’s all about AI. Nobody talks about anything else all day,” Burry writes on Substack.

Burry, best known for predicting the housing bubble during the financial crisis, says the market has stopped responding rationally to macro data such as jobs reports and consumer confidence. “It feels like the last months before the 1999-2000 bubble,” he writes.

Hedge fund profile Paul Tudor Jones also drew parallels this week between the AI ​​rally and the dot-com crash, although he believes the upswing could continue for a couple more years.
 

US job figures
115,000 new jobs created in the US – clearly more than expected

US employment increased by 115,000 new jobs in April, according to fresh figures from the US Department of Labor. This was clearly more than the expected 65,000 new jobs, according to the Trading Economics consensus estimate. The unemployment rate remained unchanged at 4.3 percent, which was expected.

Employment in March is revised up to 185,000 new jobs against the preliminary figure of 178,000. For February, the loss is revised down to 156,000 lost jobs against the preliminary 133,000 jobs.

Average hourly earnings increased by 3.6 percent at an annual rate in April from 3.4 percent the previous month. This was slightly lower than the expected 3.8 percent. The share included in the labor force decreased slightly to 61.8 percent.

The upswing in futures trading ahead of the US stock market opening strengthens slightly after the figures. At the same time, the decline in US long-term interest rates strengthens slightly.