U.S. Money Market Funds Hit $7.24 Trillion, 14% of S&P 500 Market Cap; M2 Money Supply Rises First Time Since 2022

U.S. money market funds have reached a record high of approximately $7.24 trillion as of May 2025, marking an unprecedented level of cash held in these short-term, liquid investments. Despite this large sum, the amount represents only about 14% of the S&P 500 market capitalization, a historically low proportion. Concurrently, the U.S. M2 money supply, which includes cash, checking deposits, and easily convertible near money, hit a new all-time high in April 2025, the first such increase since April 2022. This resurgence in money supply growth indicates renewed money printing activity after a three-year pause. The increase in liquidity and money supply has drawn attention from market observers, with some noting potential implications for various asset classes, including cryptocurrencies like Bitcoin.

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