The Stock Market Is Flashing the Same Warning Signal That It Did Before the Dot-Com Bubble. Here's What History Says Comes Next.

Published August 12, 2026 · Category: Finance

Overview

Despite multiple headwinds this year, stocks have continued their uphill march. The benchmark S&P 500 (SNPINDEX: ^GSPC) has shrugged off the conflict with Iran, persistently elevated inflation, and a variety of concerns triggered by artificial intelligence, climbing 13% on the year (as of Aug. 11).

While valuations of artificial intelligence (AI) companies did take a breather earlier this year, investors have returned to the group in recent weeks, leading to a strong rebound. The S&P 500 is now up more than 100% since the start of 2023, and many now think the index will hit 8,000 this year.

Details

Yet, the stock market is now flashing the same warning signal it did during the dot-com bubble. Here's what history suggests comes next.

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Source

Originally published at www.fool.com.

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