TradingKey – Since late March, US stock markets have recorded a strong rally. As of June 15, the Nasdaq Composite Index posted a cumulative gain of 28%, the S&P 500 Index rose 18.8%, and the Dow Jones Industrial Average climbed 14%.

Heading into June, the market experienced a noticeable pullback during the release window for key macroeconomic data, with the tech sector leading the broader market down. Following the release of US non-farm payroll data on June 5, the Nasdaq Composite tumbled over 4% in a single session; after CPI data was released on June 10, the index recorded another single-day decline of over 2%.

This long-overdue, deep correction has once again revived the debate over the AI valuation bubble that was heavily discussed…