Michael Burry Warns of 1987-Type Crash as S&P 500 Hits Record High

Michael Burry warned that US stocks may be near a major top and could suffer a 1987-type crash in a Tuesday Substack post titled 'Trading Post August 4, 2026 My Options.' The investor, known for predicting the 2008 housing collapse, confirmed he still holds short positions against Nvidia, Tesla, Palantir, and other AI-linked stocks. Burry believes demand for AI infrastructure depends on financing that may prove unsustainable, and he stated that fresh highs tend to pull new money into stocks while falling volatility forces systematic funds to add leverage. The warning came as the S&P 500 posted its first record close since June on Tuesday, gaining 1.79% to close at 7,736.52.

S&P 500 and Nasdaq Post Record Closes on Tuesday

The S&P 500 gained 1.79% to close at 7,736.52 on Tuesday, while the Nasdaq Composite climbed 2.59% to a record high of 26,584.99. Equities advanced as upbeat corporate earnings and lower oil prices lifted sentiment, with crude retreating on expectations that the Strait of Hormuz could reopen. This latest forecast from Burry comes days after his June 30 bubble warning.

"I continue to believe it is possible we are near a major top, and possible a 1987-type fall, but the S&P 500 making new highs likely will bring new money into the market," Burry wrote in the post, reported by CNBC.

Burry Maintains Short Positions Against Seven Stocks and ETF

Burry said he continues to short the iShares Semiconductor ETF (SOXX), Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials. Every position remains profitable except his bet against Nvidia. Burry added that he would cut losses if the trades moved decisively against him.

Nvidia Reports Earnings on August 26

Nvidia reports earnings on August 26. Nearly every analyst forecast for Nvidia still rates the stock a buy. Burry's losing trade against Nvidia faces a fresh test with this upcoming earnings report.

FAQ

What did Michael Burry warn about US stocks on Tuesday?

Michael Burry warned that US stocks may be near a major top and could suffer a 1987-type crash in a Tuesday Substack post titled 'Trading Post August 4, 2026 My Options.' He stated that the S&P 500 making new highs likely will bring new money into the market, and he believes demand for AI infrastructure depends on financing that may prove unsustainable.

Which stocks is Michael Burry shorting?

Burry continues to short the iShares Semiconductor ETF (SOXX), Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials. Every position remains profitable except his bet against Nvidia, according to his Tuesday Substack post.

When does Nvidia report earnings?

Nvidia reports earnings on August 26. Nearly every analyst forecast for Nvidia still rates the stock a buy, and Burry's losing trade against Nvidia faces a fresh test with this upcoming earnings report.