strategists at jpmorgan chase warned monday that stocks’ broad rally fueled by artificial intelligence intrigue could soon come tumbling down as the world’s largest bank throws cold water on the ai frenzy which has sent stocks surging despite not yet materially impacting most corporate bottom lines in a note to clients a group led by jpmorgan’s chief markets strategist marko kolanovic laid out their case for a bearish outlook for equities even as historically strong sentiments among investors prevail the rally led by the largest technology companies is “indicative” of “an aidriven bubble” as the hype surrounding the technology “was triggered by the “popularization of chatbots that often fail in basic questions” rather than concrete evidence of aipowered earnings growth according to the bank jpmorgan predicted there will be broad market declines as the market reprices in the lingering impact of higher interest rates an “erosion” of personal savings and a “deeply troubling” geopolitical backdrop—factors which drove stocks to their worst year in more than a decade in 2022 the sp 500 is up nearly 20 this year thanks in large part to 19 trillion worth of gains among top ai players like nvidia alphabet and microsoft the narrow concentration of the gains could justify a broader rally among stocks left out of the multiple explosion party so far goldman sachs analysts led by david kostin laid out in a friday note if the pricetoearnings multiple of the 493 sp constituents not named alphabet apple amazon microsoft meta nvidia or tesla raises just from its current level of 17x to 19x the sp will rally to an alltime high goldman forecasted now’s a “good entry point” for commodities as the asset class prices in “by far the highest risk of recession and stand out as undervalued underowned and backed by compelling fundamentals and technicals” kolanovic wrote what to watch for a glut of economic and financial news is on deck this week the federal reserve will reveal wednesday whether it will further raise interest rates while alphabet and microsoft’s tuesday afternoon earnings reports kick off the primetime of megacap tech earnings season heres how much tech stocks could surge amid ai revolution’—but some warn euphoria is unsustainable forbes best stocks of 2023’s first half nvidia leads big tech renaissance forbes