S&P 500 Rises 12.65% in 2026 Amid Concerns Over Leverage Echoing the Panic of 1907
The S&P 500 closed at 7,711.75 on August 30, 2026, marking a year-to-date gain of 12.65%. Columnist Jason Zweig warns that the current market environment bears more resemblance to the speculative frenzy preceding the Panic of 1907 than it does to the dot-com bubble in 1999. Zweig highlights parallels between today's high levels of leverage and short-term trading activity—such as same-day options accounting for a record 66.2% of S&P 500 options volume—and the speculative practices that led up to the 1907 crash, including heavy borrowing through bucket shops. Margin debt has surged from $1.02 trillion in July 2025 to $1.42 trillion as of this year, signaling increased risk exposure among investors.
Topics: 1907 Panic leverage margin debt S&P 500 trading frenzy