economy
A sell-off like Friday's is ‘rarely the top’ of a rally, says Wharton’s Jeremy Siegel
The artificial intelligence-driven rally is different from previous market bubbles, according to Siegel, who likened it to the Industrial Revolution.
TL;DR
- Friday's tech sell-off is a common reaction to parabolic stock price rises, not typically the start of a prolonged correction.
- The Nasdaq experienced its worst weekly decline since April 2025, though it remains up 10.6% year-to-date.
- Semiconductor stocks, despite significant year-to-date gains, saw a notable drop, with some ETFs experiencing their worst single-day or weekly moves in years.
- Siegel likens the AI revolution and its market impact to the Industrial Revolution, differentiating it from previous market bubbles.
- He warns that inflated stock prices, especially in chip stocks, are only sustainable if earnings increase permanently, not just for a temporary surge.