U.S. Equity Market Capitalization Hits 350% of M2 Money Supply, Matching Dot-Com Peak

The total valuation of the U.S. stock market surged to 350% of the U.S. M2 money supply, marking its highest ratio since the peak of the 2000 Dot-Com Bubble.
The metric reflects an accelerating divergence between equity valuations and broad monetary expansion since the 2022 market bottom:
• The equity-to-M2 ratio expanded by 170 percentage points over the cycle.
• The S&P 500 ($SPX) gained 118%, while total M2 money supply increased by just 9%.
• Equity valuation growth has outpaced domestic money supply expansion by 13x, representing the widest valuation premium relative to M2 growth since the 1995–1999 bull market.