Why Are Stock Markets Not Freaking Out?

10th September 2025

US stock market valuations are reaching record levels last seen in the dot com bubble.

But whilst a few big tech firms are booming, at the same time the US has record tariffs, inflationary pressures, the dollar falling, debt soaring and and the independence of the Fed under threat.

There are two different explanations.

Firstly, you can argue the US economy is still relatively resilient and will shrug off all these challenges and continue its economic exceptionalism where it has outperformed the EU.

The second is that markets just don’t want to recognise the seismic changes hitting the economy