The S&P 500 has soared since bottoming in October 2022, fueled largely by gains in AI-related stocks, and the author notes valuations are approaching very extreme levels. The CAPE ratio stands at 40.71, one of the highest readings in 156 years; the last time it was this high was the dot-com bubble, and 1929 also saw a record high before the market crashed. The article notes that AI leaders such as Nvidia, Microsoft and Alphabet are highly profitable, unlike many speculative dot-com companies, but argues that even a promising technology does not guarantee a bull market lasts forever. The author says this does not mean a crash is inevitable, but suggests reviewing how well a portfolio is prepared for a potential downturn.
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S&P 500valuationartificial intelligenceNvidia
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Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 690.49 |
| Change that session | -3.47% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.72 |
| Change that session | -1.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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