U.S. stock valuations have reached peak levels not seen in 20 years, with the S&P 500 earnings yield falling to a near-record low compared to BBB-rated bond yields. This indicates that medium-risk corporate bonds are yielding more than the S&P 500, highlighting the high valuation of U.S. stocks. The top 10 S&P 500 stocks have a price-to-earnings (P/E) ratio of approximately 30x, the highest since the Dot-Com Bubble in 2000 and the 2021 peak before the subsequent bear market. In contrast, the P/E ratio for the S&P 500 excluding these top stocks stands at 19x. Additionally, the S&P 500 Information Technology sector's price-to-sales (P/S) ratio reached 9.7x at the end of 2024, nearly doubling over two years, while the Magnificent 7's P/S ratio increased by 110% since December 2022, now at 8.6x. Analysts from Bank of America have noted that the S&P 500 appears expensive across nearly all valuation metrics, suggesting that this trend may persist.