Will US stock market crash in 2026? Here’s what experts are warning

Jamie Dimon, CEO of JPMorgan Chase (America’s largest bank), recently said the chance of a serious US market correction is “far higher than the 10 per cent currently priced in” and may occur within the next six months to two years. His warning adds weight to concerns over valuations, stretched assets and global uncertainty.

Michael Burry, famed for correctly forecasting the 2008 housing crash, has recently taken large short positions in major tech firms such as Nvidia and Palantir, signalling scepticism toward the current rally. Burry argues that inflated valuations, especially in AI-driven companies, may herald a broader market collapse.

Though no one says “2026 crash for sure,” many analysts place heightened risk in the coming year because stimulus-era buffers are disappearing and inflation and interest rates remain higher than expected. A correction in 2026 is considered plausible by those watching valuation excesses and structural weakness.

Burry and other analysts point to what they see as an unfolding “AI bubble” for example, tech firms depreciating high-cost assets over overly long time-frames, potentially overstating earnings through 2026–2028. If tech valuations falter, a ripple effect might hit broader markets.

Key themes include: high corporate and consumer debt, rising interest rates, global geopolitics (rarely calmer), and over­confidence in growth. When banks like JPMorgan say the market underestimates risk by a large margin, it’s a red flag for 2026 readiness.

While some strategist teams remain bullish, caution is far more visible than usual. Corrections of 10-30 per cent are flagged; the timing is uncertain but 2026 is flagged as a year when vulnerabilities could crystallise. The message: “Don’t assume the rally continues unchecked.”

• Check exposure: high valuation sectors (tech, speculative growth) are under scrutiny.
• Increase diversification: reduce concentration in mega caps.
• Strengthen liquidity: market corrections often produce sharp drawdowns.
• Monitor leading indicators: credit spreads, valuations, corporate capex, hiring trends.
• Stay level-headed: a crash is not inevitable, but the risk is elevated.

While nobody is forecasting a guaranteed crash in 2026, multiple serious voices, including Jamie Dimon and Michael Burry are warning that the risk of a market correction is higher than commonly assumed. Structural vulnerabilities in valuations and macro policy suggest 2026 could test investor optimism. Being prepared now is more prudent than being surprised later.