Michael Burry warns of 1987‑type stock market crash as S&P 500 hits record high
Investor Michael Burry, famed for predicting the 2008 housing‑market collapse, posted on Substack that the U.S. equity market may be nearing a peak that could trigger a crash similar to the 1987 Black Monday event. He said the rally is being driven by strong earnings, lower oil prices and a wave of AI‑related optimism, but that falling volatility is encouraging leveraged funds to increase exposure, creating a fragile system.
On the day of his warning the S&P 500 index rose about 1.9% to a new all‑time high, while the Nasdaq Composite jumped 2.7%. Burry disclosed that he is short the iShares Semiconductor ETF (SOXX) and individual stocks including Micron Technology, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials. He noted that all of these short bets are currently profitable except the position against Nvidia.
Burry also reiterated his criticism of the AI boom, arguing that much of the financing for AI infrastructure relies on risky credit arrangements that may not be sustainable. His comments have been reported by CNBC, Business Insider, The Times of India and other outlets.
Entities: Artificial Intelligence (AI) market · Michael Burry · Micron Technology · Nvidia · S&P 500 · iShares Semiconductor ETF · iShares Semiconductor ETF (SOXX)
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 4 SOURCES] All of Burry's short positions are currently profitable except the one against Nvidia. (Burry's Substack post as reported by CNBC and other outlets.)
- [● 4 SOURCES] The S&P 500 reached a new record high, rising about 1.9% on the day of Burry's warning. (CNBC and other market reports.)
- [● 5 SOURCES] Burry criticizes the sustainability of AI‑related financing, saying low volatility fuels leveraged fund exposure. (Burry's Substack post and CNBC coverage.)
- [● 5 SOURCES] Michael Burry warned of a potential 1987‑type stock market crash. (Burry posted on Substack and was quoted by CNBC and other outlets.)
- [● 5 SOURCES] Burry posted his warning on Substack on Tuesday, August 4/5, 2026. (Substack post date cited by CNBC.)
- [● 5 SOURCES] Burry holds short positions in Micron Technology, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials. (Burry's Substack post as reported by multiple outlets.)
- [● 5 SOURCES] Burry holds a short position in the iShares Semiconductor ETF (SOXX). (Burry's Substack post as reported by CNBC.)
- [● 5 SOURCES] Michael Burry previously predicted the 2008 housing‑market collapse. (Background information in multiple articles.)