US Stocks Surpass 1929 Valuation Levels as AI Rally Accelerates

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U.S. stock valuations have climbed above pre-1929 levels as AI-driven gains lift markets, with the Shiller CAPE ratio at about 39–41 versus a long-term average near 17 and still below the dot‑com peak. Macro risks — inflation, oil shocks and ETF outflows — are putting pressure on stocks, bonds and crypto, raising downside risk for crypto markets, DeFi activity and CEX/DEX volumes and complicating fundraising and token launches.
- US stocks trade near historic highs as AI-led gains push valuations above long-term averages.
- CAPE ratio signals stretched markets while AI giants drive most of the index gains today.
- Inflation, oil shocks, and ETF outflows add pressure across stocks, bonds, and crypto markets.
U.S. stock market valuations have risen above levels seen before the 1929 crash, placing equities in one of the most expensive stretches in modern history. Key indicators, including the S&P 500’s Shiller CAPE ratio, now sit well above long-term averages as stock prices continue to climb.
The Shiller CAPE ratio recently stood between 39 and 41, more than double its historical average of about 17. The measure remains below the peak reached during the dot-com bubble in 2000, but it now exceeds levels recorded before the Great Depression.

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The rise has largely followed stro…
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