A senior Bank of England official has issued a stark warning to investors, stating that global stock markets are currently overvalued and vulnerable to a sharp decline. The deputy governor expressed concerns about market complacency amid ongoing economic uncertainties.

Despite these warnings, Wall Street continues to climb. The S&P 500 and Nasdaq have set multiple record highs this month, with technology stocks leading the charge. Nvidia’s market cap exceeded trillion again, while Intel posted its biggest single-day gain in nearly four decades.

Market strategists note that the current rally is being driven by strong corporate earnings and optimism about AI investments. However, some warn that the disconnect between stock prices and underlying economic fundamentals could lead to increased volatility.