S&P 500 Valuation Metric Hits 25-Year High at 42.18, Nearing 1999 Bubble Peak

US500-0.17%
According to BlockBeats, on May 15, the Shiller P/E Ratio, a gauge of U.S. stock market valuation adjusted for long-term earnings trends, rose to 42.18, approaching the 1999 internet bubble peak of 44.19. The surge reflects artificial intelligence-driven gains in technology stocks. Analysts noted that while elevated valuations alone do not directly predict market declines, they heighten sensitivity to earnings and macro data surprises, potentially amplifying volatility if fundamentals disappoint.
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