Multiple Concerns Lurk Behind Stock Market's New Highs, Current Price-to-Earnings Ratio Second Only to Dot-Com Bubble

BlockBeats News, May 1st, according to the Financial Times, despite the recent continuous all-time highs of the S&P 500 Index and the Nasdaq Index, there are still multiple risks lurking behind the market.

Valuations are at historically high levels. Data shows that as of April 2026, the S&P 500's trailing P/E ratio is around 24 times (historical average is around 16 times), the Shiller P/E ratio (cyclically adjusted) has risen to over 37 times, reaching a historical peak second only to the dot-com bubble period. This combination of "valuation + high expectations" means that the market has very limited room for error.

Furthermore, the current U.S. stock market rally is built on optimistic assumptions such as "AI-driven earnings, falling inflation, declining interest rates, and manageable risks." Any deviation in any of these variables could trigger a market-wide shock.