<div id="readability-page-1"><div><div>Deutsche Bank analysts have raised concerns about the market cap of Nvidia Corporation NVDA, suggesting that it may be contributing to a potential bubble in the U.S. equities market.<h2>Nvidia's Surge Fuels Concerns Of A US Equity Bubble</h2>Deutsche Bank’s research note, authored by analysts Jim Reid, Henry Allen, and Rajsekhar Bhattacharyya, raises the question of whether the U.S. equities market is in a bubble. The report highlights Nvidia’s substantial market cap as a potential contributing factor to this situation, reported Fortune. U.S. could be considered a “bubble risk,” it said.Check out the current price of NVDA stock here.The report highlights that Nvidia, along with Microsoft MSFT, Alphabet GOOG GOOGL, Apple AAPL and Amazon AMZN, now makes up 30% of the S&amp;P 500's total market value — a concentration surpassing the dotcom bubble of 2000 and raising concerns of distortion in U.S. equities.The analysts point out that Nvidia’s market cap now exceeds that of every country’s listed stock exchange, except for the U.S., China, Japan and India, a trend that has historically not been the case. The analysts stated, “The U.S. is now nearly five times larger than China (in second) and around 20 times larger than Europe's larger markets.” They added that this doesn’t necessarily mean a bubble, but it does indicate we are in uncharted territory.Over the past 5 days, the S&amp;P 500 experienced a 0.22% drop, while Nvidia’s shares plummeted by 6.19%, as per data from Benzinga Pro. This significant decline in Nvidia’s stock value has sparked concerns about the overall stability of the U.S. equities market.<h2>Soaring Treasury Yields Weigh on High P/E Tech Stocks</h2>Nvidia, with its astonishing growth and a market cap of $4.2 trillion, is now worth more than the equity markets of five of the seven G7 nations—Italy, Germany, France, the U.K., and Canada.Earlier this week, Nvidia’s stock was trading lower due to a broader tech sell-off triggered by rising long-term interest rates. The rise in the 10-year Treasury yield to nearly 5% put pressure on high-growth, high P/E stocks, making future earnings seem less valuable and leading to a retreat from tech sector leaders.Concerns about the impact of rising long-term interest rates on certain stocks were also expressed by Gary Black, Managing Director of The Future Fund LLC. He warned that high P/E stocks like Nvidia, Tesla TSLA and Palantir PLTR could be significantly affected by the rise in 10-year Treasury yields.Benzinga's Edge Rankings place Nvidia in the 94th percentile for quality and the 98th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here. READ NEXT:<ul> <li>Alibaba, ByteDance Defy Beijing Warnings As Chinese Tech Titans Race To Secure Nvidia’s $12,000 H20 Chips, Eye Next-Gen B30A At Double The Price</li> </ul>Image via Shutterstock</div></div></div>

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Deutsche Bank analysts warn that Nvidia's soaring market cap may contribute to a potential bubble in the U.S. equities market. Nvidia, along with major tech companies, constitutes 30% of the S&P 500's market value, raising concerns of market distortion. The report notes Nvidia's market cap exceeds that of most countries' stock exchanges, indicating uncharted territory. Recent declines in Nvidia's stock and rising Treasury yields are pressuring high P/E tech stocks, prompting fears about overall market stability.

- Deutsche Bank analysts express concerns that Nvidia's substantial market cap may contribute to a potential bubble in the U.S. equities market.  
- The report indicates that Nvidia, along with major tech companies, constitutes 30% of the S&P 500's total market value, surpassing the dotcom bubble concentration.  
- Rising long-term interest rates are pressuring high P/E tech stocks, with Nvidia's market cap exceeding that of several G7 nations, raising questions about market stability.  

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Nvidia's Soaring Market Cap Pushing S&P 500 Towards 'Bubble Risk,' Warns Deutsche Bank