Nasdaq’s Market Cap Surge Sparks Comparisons to Dot-Com Bubble

The Nasdaq's market capitalization has reached unprecedented levels, now standing at 176% of the U.S. M2 money supply—a record that dwarfs even the peak of the Dot-Com Bubble by 45 percentage points. Global markets commentator The Kobeissi Letter captured the sentiment with a blunt assessment: "This is insane."

The ratio of Nasdaq's market cap to U.S. GDP has also hit a historic 129%, nearly double the March 2000 high. Such metrics are drawing scrutiny from Wall Street, as they suggest a growing disconnect between financial markets and underlying economic fundamentals.

M2 money supply, which includes cash, checking deposits, and easily accessible savings, serves as the liquidity backbone of the U.S. financial system. When market valuations outpace this base layer, it signals speculative excesses reminiscent of past bubbles. The current surge raises parallels to 2000, when the Nasdaq's collapse followed a period of unchecked speculation.