US stock market frenzy! The S&P 500 index surges past 7400 points to hit a new record high, with call option trading volume soaring over $2.6 trillion to set a historical record.

U.S. stock investors are experiencing total FOMO! The S&P 500 index surged past the 7,400-point mark during intraday trading today (8th), hitting a new all-time high once again. Driving the market is not just the strong fundamentals of AI tech stocks, but also a derivatives market spiraling into a frenzy. Latest data shows that the single-day trading volume of S&P 500 call options has soared past $2.6 trillion, accounting for 58% of total options trading—breaking a historical record set in 2018. Analysts warn that market risk appetite is "through the roof." (Previous coverage: Quick Look at the "Magnificent Seven" Earnings: Microsoft, Amazon, Alphabet, and Meta all beat Q1 expectations! Cloud and AI businesses shine.) (Background: Fed Chair transition—are U.S. stocks and Bitcoin doomed to fall? Can Warsh break the curse upon taking office?) The bull market train of the U.S. stock market is barreling forward at a staggering speed and scale, with retail and institutional investors scrambling to jump onto a train that seems to have no brakes. As of noon ET on May 8, 2026, the S&P 500 index continues to show extreme resilience, hitting an intraday high of 7,400.09 points, up approximately 0.81%, refreshing both its 52-week and all-time highs. Looking back at recent trends, against the backdrop of stellar earnings from AI-related tech stocks and a slight easing of geopolitical tensions in the Middle East, risk capital is flowing back into the market on a massive scale. However, behind this record-breaking spot market rally, the derivatives market is staging an unprecedented speculative carnival. Renowned financial analysis account The Kobeissi Letter released a shocking data report earlier today, revealing the "options fuel" driving this U.S. stock rally. Data shows that this past Wednesday (May 6), the single-day trading volume of S&P 500 call options soared to a record $2.6 trillion in notional value. The Kobeissi Letter pointed out that since the beginning of 2023, the total dollar value of call options traded has more than quadrupled. BREAKING: Call option volume in the S&P 500 spiked to a record $2.6 trillion in notional value on Wednesday. The total dollar value of call options traded has more than QUADRUPLED since the beginning of 2023. Call options also accounted for ~58% of all S&P 500 options traded on… pic.twitter.com/sUORexM7zW — The Kobeissi Letter (@KobeissiLetter) May 8, 2026 Even more concerning (or exhilarating) is the structural imbalance in the options market. The report highlights several key extreme data points: - Record-breaking share: Wednesday's call option volume accounted for 58% of all S&P 500 options trading. - Breaking a six-year record: This figure successfully surpassed the previous historical high of 52% set in 2018. - Far above historical average: In contrast, the average call option share over the past 15 months was only 46%. What does it mean when more than half of the derivatives capital in the market is betting that "the market will continue to rise"? The Kobeissi Letter summarized it in their post: "Risk appetite is through the roof." From a market mechanism perspective, this extreme buying of call options forces Market Makers to purchase stocks in the spot market to hedge their risks (the so-called Gamma squeeze effect), which further serves as a powerful technical push driving the S&P 500 past 7,400 points. However, in the eyes of Wall Street veterans, when "everyone is on the same side of the boat," it is often the moment the market is most vulnerable. This extreme bullish sentiment and high-leverage derivatives activity strongly suggest that the market may already be in a state of severe overheating. While investors enjoy the feast of asset inflation, they should also remain highly vigilant against any macro "black swan" events that could trigger a liquidity reversal.