Trump Bull Market Nears End as 4.2% Inflation Meets Dot-Com-Level Valuations

3 articles · Updated · The Motley Fool · Jun 13

A 21% S&P 500 gain since Trump’s inauguration is increasingly colliding with warning signs that the rally may be close to exhaustion.
Consumer prices rose 4.2% last month—the highest in three years—while investors await the June 16 Fed meeting under new Chair Kevin Warsh for clues on rates.
The sharpest red flag is valuation: the S&P 500’s Shiller CAPE has climbed above every past peak except the dot-com bubble, a level that historically preceded declines.
AI leaders such as Nvidia, Alphabet and Micron still anchor the advance, but tariff costs, Iran-linked energy and supply-chain disruptions, and sensitivity to earnings misses have made the market more fragile.
The index is still on track for a 6% first-half rise, yet the report argues that expensive stocks, hotter inflation and policy uncertainty are raising the odds the Trump-era bull run is nearing its end.