The Last Time the S&P 500 Ran Up this Fast was Before the 1987 Crash
Quick Read
-
The S&P 500's 16% two-month surge and a Shiller P/E of 43 mirror conditions seen just before the 1987 and dot-com crashes.
-
SPY dropped 0.3% as Broadcom sank 13% in premarket after CEO Hock Tan declined to raise the $100B full-year AI chip target.
-
Five Below plunged 10% despite beating EPS by 43 cents and revenue estimates, as analysts questioned the scale of its fiscal 2026 guidance raise.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
Live Blog Update #1 Published
← Back to Full Coverage: Stock Market Live June 4, 2026: S&P 500 (SPY) Fall as Broadcom Sinks
It pays to be cautious in the market.
“The S&P 500 was up more than 16% over April and May, a magnitude that’s only happened in four other instances since World War II, Deutsche Bank Research found,” as noted by CNBC. “The last time the S&P 500 rose like it is now outside of a recession period was the few months before the 1987 crash.”
There are also other signs of a potential crash.
For example, if we look at the Case Shiller P/E ratio, it currently stands at 42.53 – its second-highest point since its 1999 high of 43.21. That was also right before the dot-com crash. You can see that chart here.
Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.
He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.
Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.
Top Gaining Stocks
Top Losing Stocks