Investor euphoria is back as stocks hit record highs each day last week, bitcoin surges, and meme stocks regain popularity. Citi’s Levkovich Index, tracking market sentiment, hit 0.65, signaling potential risk. Elevated sentiment leaves markets vulnerable to disappointment, with recent price action raising concerns. Potential triggers to reverse the run-up include a global slowdown or weaker consumer spending. Speculative growth names have surged, with Goldman Sachs’ Non-Profitable Tech Index up 65% since spring lows. Goldmans’ Speculative Trading Indicator signals near-term upside risk for the equity market but also increases the risk of a downturn. Citi’s Pettit notes the current market setup differs from past periods of excess like the dot-com boom or post-pandemic melt-up.

Read more at Yahoo Finance: Signs of stock market ‘euphoria’ on the rise as markets cap 5-day streak of record highs