Deutsche Bank
June 3, 2026
Will 1999 Turn into 2000 or 1987 or Reset Back to 1996
Macro ThematicEquitiesMacro Economic IndicatorsInformation Technology
The S&P 500's +16% gain in April and May 2026 is historically rare, with the only non-recessionary parallel being the lead-up to the 1987 market crash. The report weighs whether current AI-driven optimism will mirror the 1999 bubble or the 1987 correction.
Key Takeaways
- 1.The S&P 500 rose +16% over April and May 2026, a historic pace seen only four other times since WWII.
- 2.Historically, such rapid gains outside of a post-recession bounce occurred only once: 1987, which preceded a major market crash.
- 3.Current market parallels to 1987 include valuation concerns, hawkish Fed shifts, and significant trade/budget deficits.
Table of Contents
- DB CoTD: Will 1999 turn into 2000 or 1987? Or reset back to 1996?
- Appendix 1
- Important Disclosures
- Analyst Certification
- Additional Information
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Authors
Jim ReidHenry AllenRaj Bhattacharyya
Securities
SPX
Themes
Historical Market AnalogiesAI and Market SentimentMonetary Policy and Rates
Regions
North AmericaGlobalUnited States
