On Wall Street, stock indices rose on Wednesday, recovering part of the losses from the previous day, primarily due to the recovery of technology company stock prices after a sharp drop the day before.
The Dow Jones strengthened by 0.48 percent, to 47,311 points, while the S&P 500 rose by 0.37 percent, to 6,796 points, and the Nasdaq index increased by 0.65 percent, to 23,499 points.
From the very beginning of trading, indices grew as investors assessed that it was a good buying opportunity after the sharp drop in stock prices the day before.
However, the market lost momentum after Jamie Dimon, CEO of JPMorgan Chase, told Reuters that stock prices are quite high and that there is always a risk of a market downturn.
For some time now, technology company stock prices have been rising sharply, thanks to the euphoria surrounding artificial intelligence development, which is the main reason for the record levels of stock indices.
As a result, some analysts warn that the market is overvalued.
Concerns about this led to a sharp drop in stock prices of several major technology companies on Tuesday. However, on Wednesday, part of those losses was recovered.
– Concerns about valuation are very legitimate, and a correction of 10 to 15 percent is possible at any moment. However, many investors believe that if a market downturn occurs, it will be short-lived, and therefore it is advisable to buy when prices fall – explains Oliver Pursche, Vice President at Wealthspire Advisors.
