NEW YORK — The S&P 500 trades at 7,710, down 0.2 percent, following its first record closing high in two months on Tuesday. The rally has split analyst opinion sharply, with prominent voices warning of a major correction.
Investor Michael Burry said in a Substack post that the market may be near a major top, with a possible 1987-style fall. His analysis points to strong momentum nearing exhaustion and an increasing risk of a sharp reversal across equities.
Burry also said new highs on the S&P 500 will likely pull fresh capital into the market before any downturn, potentially extending the rally in the near term while masking underlying risks.
Analyst Krumpelman projects the S&P 500 can reach 8,100 by year-end and 8,400 by mid-2027. He cautioned that a market lacking a "wall of worry" implies all available capital is already invested, reducing further upside — a condition where widespread confidence can paradoxically signal a top.
Evidence of a broadening rally emerged as the Invesco S&P 500 Equal Weight ETF (RSP) rose 11 percent year-to-date through Friday, edging out the S&P 500's 9 percent gain and showing strength beyond the largest-cap stocks.
Technical indicators are flashing overbought across the board, according to Investing.com.
Analyst Wilson said the S&P 500 could fall to 7,000 if the recent decline in high-flying AI stocks spreads to other sectors. Wilson believes the bull market will return in earnest after any such dip and maintains a year-end target of 8,000.
Corporate profit strength and a reset in AI shares continue to support the broader rally, providing fundamental backing for current valuations even as technical signals urge caution.
Among major technology stocks, Microsoft gained 2.5 percent to $499.86 and Apple rose 0.5 percent to $312.41, while Alphabet fell 1.3 percent to $357.75 and Nvidia dropped 0.1 percent to $218.99.
