US White House NEC Director Hassett says the economy is not in bubble territory, adds AI companies are making money

Bubble commentary from senior administration officials follows a well-worn pattern: it tends to surface after valuations in a favoured theme have drawn public scepticism, and it functions as reassurance rather than analysis. Remarks of this kind from NEC directors and their predecessors have historically had no durable effect on the equity complex they address; the index level has moved on earnings delivery and rate expectations, not on official comfort. The operative claim here, that AI-linked companies are profitable, distinguishes this episode from prior manias where the leadership was pre-revenue, a distinction sell-side strategists have leaned on heavily, and the pushback from a White House economic voice signals the administration's political stake in the theme's durability. What bears watching is whether this is a one-off or part of a coordinated communications pattern across officials, since repeated official endorsement of a crowded trade has on past occasions coincided with late-cycle positioning rather than marked a top in itself. The proximate tests remain the AI complex's upcoming earnings prints and capex guidance, which is where the profitability claim is actually verified or contradicted.