20 S&P 500 Stocks Hit Records, Echoing 2000 Bubble as Shiller P/E Tops 40
Updated
Updated · The Motley Fool · Jun 29
20 S&P 500 Stocks Hit Records, Echoing 2000 Bubble as Shiller P/E Tops 40
2 articles · Updated · The Motley Fool · Jun 29
Summary
20 S&P 500 companies closed at record highs on May 29, and only seven were not tied in some way to AI, highlighting how narrowly the rally is concentrated.
Bank of America strategist Michael Hartnett said that setup closely resembles the period just before the dot-com bubble burst in March 2000, when 20 stocks also hit fresh highs.
The valuation backdrop adds to the comparison: the Shiller P/E is about 41, above the 40 level reached only once before in the run-up to the 2000 crash.
Neel Kashkari said on June 26 he now expects at least one Fed rate hike before the end of 2026, a shift that Hartnett sees as a potential trigger to stall the bull market.
The warning stops short of calling a crash inevitable, but suggests markets could react sharply to bad news after the S&P 500's surge from below 3,600 in October 2022.