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S&P 500 drops just 7.5% despite severe global oil and food price shocks, keeping valuations high.

Market News
01 Apr 2026
Seeking Alpha
View Source
Bearish
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Despite a major global shock in oil, natural gas, and food prices, the S&P 500 index has fallen only 7.5% from its peak in the past month. This limited decline has left stock valuations more than 50% above their long-term average and nearly double the post-WWII average relative to GDP. The market's muted reaction is surprising given the largest recorded disruption in energy supplies and suggests investors may be underestimating the broader economic risks. The situation raises concerns about potential overvaluation and complacency in equity markets amid ongoing global economic challenges.

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