WSJ: Margin Debt Hits Record $1.4 Trillion in 'Trillion-Dollar Borrowing Binge' Fueling U.S. Stock Rally
- A new WSJ deep-dive reports U.S. margin debt surged 54% year-over-year to a record $1.4 trillion in May 2026, as leveraged ETFs and margin loans amplify the rally (wsj.com/finance/stocks/the-trillion-dollar-borrowing-binge-lifting-the-stock-market-to-risky-heights-8d0377f9).
- Analysts warn the leverage is creating a 'lottery mentality' that could magnify any sentiment reversal, echoing concerns flagged in the BIS annual report and by emerging-market bond investors coping with a hawkish Warsh Fed.
- The piece lands as the mega-cap tech/AI complex sees its sharpest rotation in months, raising the stakes for Friday's June jobs report as a potential trigger for a deleveraging cascade.