Guide to 'Tech Man's Wall Street': Is a 'Double Bubble' Emerging in U.S. Stocks? Analysts Warn Corporate Earnings Growth Is Slowing, Collapse Could Trigger Market Crash

Is a 'double bubble' forming in the U.S. stock market? Analysts Joachim Klement and Francisca Reis from UK investment bank Panmure Liberum recently warned that the key pillar of the U.S. bull market—corporate earnings—is showing clear signs of slowing and deviating from long-term trends. They noted that the S&P 500 index is currently trading at around 41 times earnings, approaching the historical highs seen during the dot-com bubble over two decades ago. According to the analysts, this isn't just a price bubble—it's also an 'earnings bubble.'

Meanwhile, Germany's famed 'Mittelstand'—a term meaning 'middle class' but referring to its backbone of small and medium-sized industrial firms—is facing a turning point. A May report by EY revealed that Germany's industrial sector is losing over 10,000 jobs per month. Industrial output declined by approximately 10% between February 2022 and early 2026, with energy-intensive industries seeing drops exceeding 15%. The primary cause is the rise of Chinese competitors, which have introduced intense price pressure, challenging long-standing German manufacturers.

On a more positive note, Nokia, once a struggling mobile phone maker, has seen its stock surge by about 90% this year after pivoting to provide critical infrastructure for AI data centers. Analyst Daryl Schoolar attributes this rebound to Nokia being 'bathed in the AI halo.' However, he cautions that such growth is 'not 100% guaranteed,' raising questions about sustainability.

In the U.S., labor market trends have surprised economists. While job growth was expected to weaken, the economy has added an average of 92,000 jobs per month so far this year—modest but stable. This marks a significant improvement from late 2025, when the economy was shedding 8,000 jobs monthly. Economists agree that one key factor may be the stagnation of the labor force, partly due to Baby Boomer retirements.

Chinese electric vehicles are also making quiet inroads into one of Europe's toughest markets: Finland. Despite competitive pricing, Chinese EVs face deep skepticism. Consumers worry about surveillance, remote control features, and whether their money supports the Chinese Communist Party. A WSJ reporter in Helsinki observed that even as dealers display BYD vehicles, public trust remains a major barrier.