---
title: "Cramer warns AI-driven rally poses greater risk than 1999"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286662373.md"
description: "Cramer warns that the current market is riskier than in 1999, citing concentrated gains in AI stocks and significant sell-offs in other sectors. The S&P 500's CAPE ratio is around 40, indicating potential for major declines. Additionally, inflation is expected to reach 6% in Q2 due to oil supply shocks, with technical indicators suggesting an overstretched market."
datetime: "2026-05-17T05:47:19.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286662373.md)
  - [en](https://longbridge.com/en/news/286662373.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286662373.md)
---

# Cramer warns AI-driven rally poses greater risk than 1999

Cramer's stark warning: Cramer says today's market is more dangerous than 1999 due to concentrated gains in AI leaders and harsh sell-offs for other sectors. Valuations near records: The S&P 500's CAPE ratio is around 40, far above its historical average, a level that has often preceded major market declines. Macro risks mount: Inflation is projected to hit 6% in Q2 amid oil supply shocks, while technical indicators show markets are overstretched.

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