The tech bubble of the late 1990s shook the financial markets, sending the markets into a bear market. But that’s not the case today. While the Dow Jones Industrial Average rose on Tuesday, the Nasdaq Composite and S&P 500 both fell this week. The credit market also sent a mixed message, suggesting that corporations’ profits are oversold. Bank of America says that while the current market environment looks similar to a late-cycle bubble, it is likely to be worse than the tech bubble of the late 1990s.
While energy stocks were dragged down by selling pressure, the market is largely oversold. A report from industry group OPEC+ suggests that near-term crude oil stocks will rise. The pullback in yields also hurt financial stocks. However, news that Visa and Goldman Sachs will announce earnings ahead of schedule is helping the financials. While the market is down today, it is still relatively low compared to its high of last week.