The S&P 500 is up around 11% so far in 2026, after gains of 17.88% in 2025 and 25.02% in 2024, driven largely by generative AI, but the article points to a growing number of warning signs. The CAPE ratio stands at 40.1 versus a historic average of 17.4, and over the last 100 years it has substantially peaked only three times, including in late 1929 (at 33) and late 1999, both followed by multi-year declines. The article compares today to the dot-com bubble, noting that information technology now makes up 40% of the S&P 500's value according to CME Group, up from just under 7% in 1990. South Korea's Kospi is down 37.1% from its June 22 peak, while US markets shed more than $1 trillion on October 30, with Intel falling 29% and Alphabet 12%. The article suggests investors could view drawdowns as a chance to buy quality stocks at a discount, and mentions keeping some cash available.
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S&P 500valuationartificial intelligenceasset bubbles
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Related tickers and likely impact
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.71 |
| Change that session | -1.77% |
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