Major U.S. indexes approach record-high valuations last seen 155 years ago, raising concerns over market stability.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite closed at record highs on June 2, driven by AI advancements, low corporate tax rates, and strong earnings. These factors have propelled markets despite geopolitical tensions earlier this year.
Valuation metrics now approach levels unseen since 1869, with no single benchmark defining overvaluation. Analysts note the AI boom and share buybacks have fueled the rally, but historical precedents suggest caution.
The potential for a correction looms as markets trade at extreme multiples, though immediate reactions remain muted amid ongoing optimism.