US Stock Market Cap Hits $63.8T with 207% Market Cap-to-GDP, Elevated P/E Ratios, and Record $6.6T H1 Trading Volume

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Updated Jul 5, 2025, 04:43 PM

The US stock market has reached historically high valuation levels, with the stock market capitalization to GDP ratio hitting a record 207%, surpassing the previous peak in February 2025. This ratio is notably higher than the 140% peak during the 2000 Dot-Com bubble and well above the 20-year average of 123%. The total US stock market capitalization reached a record $63.8 trillion, doubling in size over the past five years and now exceeding the combined market values of Europe, China, Japan, India, and Hong Kong. Market concentration is also at an all-time high, with the top 10% of US stocks accounting for approximately 76% of the market capitalization, a level not seen even during the 1930s.

Valuation metrics such as the Shiller price-to-earnings (P/E) ratio on the S&P 500 stand at 38 times earnings, the second-highest since the Dot-Com bubble, and the forward 12-month P/E ratio for the S&P 500 has reached 22, well above the historical median of around 16. The Nasdaq 100’s P/E ratio is even higher at 28. Globally, the stock market capitalization to GDP ratio hit 117%, the second-largest ever recorded, exceeding the peak during the 2000 Dot-Com bubble. Despite geopolitical tensions, tariffs, and market volatility, trading activity surged with investors exchanging a record $6.6 trillion worth of stocks in the first half of 2025, driven largely by retail investors. These metrics collectively suggest that global and US stock markets are currently priced at elevated levels.

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#US #Europe #China #Japan #India #Hong Kong #Shiller #Nasdaq

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Sources

globalmarketsinvestor.beehiiv.com(7)

Global Markets Investor

@GlobalMktObserv

🚨The S&P 500 valuation reached EXTREME levels: The S&P 500's next 12-month P/E ratio hit 22, the highest across historical 20-year distributions. By comparison, the median is ~16x. The Nasdaq 100's P/E is 28x. The market is priced in for perfection👇

Global Markets Investor

@GlobalMktObserv

⚠️Is the US stock market in a BUBBLE? The US stock market capitalization to US GDP ratio hit a record 207%, officially surpassing the February high. By comparison. the 2000 Dot-Com bubble peak was 140% while the 20-year average is 123%. Read more👇

Markets Today

@marketsday

Investors traded a record $6.6 trillion worth of stock in the first half of 2025 Tariffs, market volatility and war in the Middle East couldn’t slow down the buying spree by individual investors, as they traded a record amount of stocks in the first half of the year. Retail