Tech Stocks Soar on AI Hype

Investors are pouring a record amount of money into tech stocks, driven by the excitement around artificial intelligence (AI), according to Bank of America Corp. Tech funds attracted an all-time high of $8.5 billion in the week through May 31, reflecting a "baby bubble" in AI. The Nasdaq 100 Index reached a record high relative to the Russell 2000 small-cap index, and the surge in tech stocks, up 32% this year, is fueled by expectations that the Federal Reserve will halt rate hikes and the sector will be less affected by an impending recession. Technical indicators and positioning are raising concerns, with the Nasdaq 100's relative strength index above the overbought threshold, increasing the risk of a selloff.