The recent sell-off in high-flying US technology and artificial intelligence stocks is a healthy pullback and not a cause for alarm, according to Ed Yardeni, President at Yardeni Research. He believes a 1999-2000 style market meltdown is unlikely, precisely because so many investors are already worried about such an outcome.

Despite recent market volatility, Yardeni remains optimistic about the outlook for US equities, reiterating his target for the S&P 500 to reach 7,000 by the end of the year. He stated his belief that the market is still in a bull phase and that a potential resolution to the government shutdown could act as a positive catalyst.

He downplayed job cuts pointing out that they are mostly concentrated in the technology sector, which can be explained by significant producti

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