The US stock market is experiencing a period of strong growth despite signs of instability in the economy…

Illustration photo – Photo: Reuters.

The S&P 500 posted four record highs in the first half of September 2025, while the Dow Jones Industrial Average crossed the 46,000 mark for the first time. This growth is believed to reflect investors’ expectations that the Federal Reserve will cut interest rates due to poor labor market data.

Another important factor is the recovery in the US Treasury bond market, as bond prices rose on concerns about the labor situation. The yield on the 10-year Treasury bond has fallen below 4%, which has helped reduce borrowing costs for businesses and created favorable conditions for the stock market.

The rise of technology stocks, especially in the field of artificial intelligence (AI), has also contributed to this growth. Large companies such as Oracle have recorded impressive stock price gains, thanks to high demand for AI infrastructure.

However, the stock market also faces many risks. The price-to-earnings (P/E) ratio of S&P 500 stocks is high, suggesting investors are taking a lot of risk. Inflation is rising, which could impact consumer spending and increase the burden of debt. Experts warn that inflation could put pressure on the economy, especially as the cost of living increases.

In this context, investors need to be cautious and closely monitor economic indicators as well as Fed policies. The stability of the US stock market depends on the ability to maintain corporate profit growth and control inflation in the coming time.