The S&P 500 index hit a new high of $7272, closing at $7259,22 after a 0,81% gain on the day, while Nasdaq reached 25326,13, a Dow Jones — 49298,25. The rise was driven by strong earnings from artificial intelligence-related companies and reduced geopolitical risks following the ceasefire between the US and Iran.
Interestingly, Warren Buffett sees no reason for optimism and believes markets are entering a dangerous phase. He believes investors are in a “gambling mood” because the prices of many assets may appear irrational at current levels.
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The current growth is driven by strong performance in the corporate sector: in the first quarter, S&P 500 companies reported profit growth of 28% year-over-year, the highest rate since 2021.
Chipmaker stocks are leading the way. The PHLX semiconductor index has risen 55% in 2026, while Intel shares have risen 13% on news of Apple using its chip design services. AMD shares are rising ahead of its earnings release, with revenue expected to grow 33%.
All 11 S&P 500 sectors posted gains, with materials and technology leading the gains. The index also recorded 43 new highs in the latest trading session.
Buffett indicated to near-record levels for the S&P 500’s Shiller CAPE ratio, bringing current valuations close to levels seen during the dot-com bubble.
At the same time, he noted that speculation is spreading across all markets, from daily options to prediction markets and sports betting. This situation reflects a growing appetite for risk across all asset classes, not just stocks.
That’s why Berkshire Hathaway is reluctant to invest its capital, which at the end of the first quarter of 2026 amounted to almost $400 million in cash and short-term Treasury bonds.
It is worth noting that over the past 12 months, the S&P 500 index has grown by 27,92%, while Berkshire Hathaway sharesy fell. Class A shares fell 6,76% to $717,886, while Class B shares fell 6,59% to $478,41.
This difference confirms investors’ choice of growth and high-risk assets.
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