Analysts flag overvaluation risk as U.S. equities stretch to 1929-like levels

Strategists warned of an overheating U.S. market after leveraged positioning and policy fatigue surfaced alongside trade frictions with China under President Trump’s new tariff stance. The S&P 500 remains up 14.5% YTD, but volatility indices are edging higher. Analysts cite speculative retail flows, margin debt expansion, and narrow leadership driving valuations reminiscent of pre-crash extremes, even as earnings strength has temporarily masked systemic leverage buildup.