Speculative activity in U.S. equities has accelerated to levels last seen during the dot-com and pandemic booms, according to a note from Goldman Sachs. The bank’s Speculative Trading Indicator, which tracks trading in high-risk shares, unprofitable companies and penny stocks, has climbed to its highest reading in more than two decades. Goldman said call options now represent 61% of total options volume, the most since 2021, while first-day returns on initial public offerings have “ballooned.” A bespoke basket of retail-favorite stocks has surged 50% since early April, underscoring the narrow breadth of the rally and the prevalence of short squeezes. The firm cautioned that past spikes in speculative trading have historically delivered above-average near-term returns but were often followed by market declines, suggesting investors could face increased volatility if the current enthusiasm fades.