Share Market News: Bubble rears to resurface after 25 years? US Stock market grows beyond economy size, valuations hit massive…

During this period, the share of financials and real estate has increased by 12 percentage points to 17 percent. Similarly, the share of consumer-related stocks has also risen by 2 percentage points to 17 percent.

Published date india.com Published: December 31, 2025 5:27 PM IST
Nifty crosses 26,000 mark and Sensex opens 700 points up, know why stock market is rising today
Nifty crosses 26,000 mark and Sensex opens 700 points up, know why stock market is rising today

New Delhi: The stock market in the United States has witnessed a major spike in 2025. As per the reports, the total value of the US stock market touched USD 68 trillion, while the country’s economy stands at USD 31 trillion. As a result, the stock market–to–GDP ratio has hit a record 218 percent. In the last eight months, this ratio has risen by 56 percent. This is 78 percent higher than during the dot-com bubble of 2000.

Reports further added that the share of tech stocks in the S&P’s market value has reached a record 49 percent this time, which is three times higher than in 1980. At that time, innovation stocks accounted for only 14 percent of the index’s market capitalization.

Back then, the manufacturing sector had a 66 percent share, which has now fallen by 49 percentage points to just 17 percent. During this period, the share of financials and real estate has increased by 12 percentage points to 17 percent. Similarly, the share of consumer-related stocks has also risen by 2 percentage points to 17 percent.

Experts are of the opinion that a similar kind of excitement around the internet was seen in the early 2000s as well. However, the dot-com bubble eventually burst, forcing many companies out of business. A large number of people lost their jobs.

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There are concerns that a similar situation could unfold this time too. If that happens, the consequences could be severe.

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