Economist Justin Wolfers on Sunday said the U.S. stock market's record-setting rally is being driven largely by a handful of artificial intelligence-linked companies, masking what he described as a much less impressive performance across the broader market.
AI Is Driving The Rally In a video posted on X, Wolfers refers to a Goldman Sachs index that excludes major AI companies as well as businesses that supply or benefit from the sector.
"The puzzle for why stocks keep hitting new highs goes away the moment you take out AI," Wolfers added.
Stocks at record highs can coexist with a pretty ordinary economy.
Why? A handful of AI-linked firms are driving much of the market's gains.
