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Economists warn of potential US stock market bubble

Jul 28, 2025, 6:27am EDT
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A person stands near an electronic board displaying information on recent fluctuations of market indices at the B3 Stock Exchange.
Amanda Perobelli/File Photo/Reuters

Investors and experts voiced concern over a bubble in the US stock market.

S&P 500 returns are “extremely concentrated in a small group of tech stocks,” Apollo’s chief economist warned, ING analysts said markets were “more worried about a bubble… than a recession,” and Bank of America strategists argued that loosening monetary policy globally was fueling “bigger liquidity, bigger volatility, bigger bubble.”

Some investors are beginning to look elsewhere for returns, with a growing number choosing bargain-basement stocks: The market is “getting this kind of ’90s, dot-com bubble feel to it,” one private-equity executive told The Wall Street Journal. “I will be looking for other opportunities.”

A chart showing the S&P 500 index to US GDP ratio
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