Warren Buffett's historic $127 billion warning to Wall Street happens to align with another stock market alarm. Specifically, the S&P 500 currently trades at a historically expensive valuation. The index achieved a cyclically adjusted price-to-earnings ratio (CAPE) of 37.9 in December 2024, which is a substantial premium to 20-year average of 27.

Wall Street pointed slightly lower in early trading Friday but remains on track to close the week with solid gains with major corporations turning in largely healthy earnings reports. Futures for the S&P 500 ticked down 0.

Shares are mixed in Asia after U.S. stocks edged back from their all-time high, with many regional markets closed for lunar new year holidays

U.S. stock indexes closed their best week in two months with a flourish on Friday. The S&P 500 climbed 1% to clinch its first winning week in the last three. The Dow Jones Industrial Average rose 334 points,