New Delhi, Aug. 27 -- The US stock market valuation has hit historic highs, with metrics like market-cap-to-GDP exceeding the Great Depression of 1929 and the dot-com crash in 2000. This has raised fears among investors that Wall Street is ripe for a deep correction.

Experts highlight that the US stock market's current valuations appear frothy, largely driven by a small group of large tech companies that have delivered very strong earnings and, as a result, very strong stock price performance.

S&P 500 index has gained over 10 per cent this year so far, while tech-heavy Nasdaq has jumped 12 per cent.

Strong investor sentiment around the emerging artificial intelligence (AI) theme has driven mega-cap tech stocks higher, pushing the US st...