Michael Burry Warns of 1987-Type Crash as S&P 500 Hits 7,736.52, Up 1.79% on Tuesday

According to a Tuesday Substack post, Michael Burry warned that US stocks may be near a major top and could suffer a 1987-type crash, even as the S&P 500 posted its first record close since June. The investor, known for predicting the 2008 housing collapse, noted that S&P 500 closed at 7,736.52 with a 1.79% gain, while Nasdaq Composite climbed 2.59% to 26,584.99 on Tuesday.

Burry continues to hold short positions against Nvidia, Tesla, Palantir, the iShares Semiconductor ETF (SOXX), Micron, Caterpillar, and Applied Materials. He believes demand for AI infrastructure depends on financing that may prove unsustainable. Every position remains profitable except his bet against Nvidia, which reports earnings on August 26.