The stock market is rising too wildly, the European Central Bank warns of the risk of a pullback: asset valuations are too high, which may amplify volatility in the financial system.

According to the AI Finance app, the European Central Bank is warning investors of the risk of a sudden and significant market correction, as investors underestimate multiple threats including the conflict in Iran. The European Central Bank stated in its semi-annual "Financial Stability Review" on Wednesday that, despite some recent market adjustments, asset prices are still historically high, and downward risks in geopolitical, fiscal, and macro-financial developments are being underestimated by the market.