Multiple Concerns Lurk Behind Stock Market's New High, Current P/E Ratio Second Only to Dot-Com Bubble

BlockBeats News, May 1st, according to the Financial Times, despite the S\u0026P 500 and Nasdaq hitting new all-time highs recently, the market still faces multiple hidden risks.

Valuations are at historically high levels. Data as of April 2026 shows that the S\u0026P 500's trailing P/E ratio is around 24 times (historical average is about 16 times), the Shiller P/E ratio (cyclically adjusted) has risen to over 37 times, reaching a historically extreme level second only to the dot-com bubble period. This "valuation + high expectations" combination means that the market has very limited margin of safety.

In addition, 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," and any deviation in any variable could trigger a market-wide shock.