S&P 500 rallies 17% since March but lags Nasdaq and MAG7 amid credit bubble concerns.

The S&P 500 has risen 17% from its March 30 lows, a modest gain compared to the Nasdaq 100's nearly 28% surge and the MAG7's 27% jump. Meanwhile, money market funds saw a record $122 billion inflow last week, signaling cautious investor behavior. Analyst Doug Noland highlights that understanding borrowing demands and finance costs is key to analyzing the current credit bubble, which he believes will lead to extreme market volatility, especially heading into 2026. This period is expected to be marked by unusual market dynamics driven by credit cycles and financial excesses.