Zombie Companies

The Dow Jones Industrial Average hit a record high, driven by traditional sectors like Goldman Sachs and Caterpillar, while the tech-heavy Nasdaq faltered due to valuation concerns despite gains in some AI-related stocks. Analysts view this divergence as a healthy market rebalancing, not necessarily excessive AI exuberance. Separately, private equity firms face challenges with “zombie companies” – stagnant portfolio companies difficult to sell, hindering fund performance. The market is watching to see if the “AI market” and the “everything else” market can move in tandem.