The U.S. stock market has been dominated by large-cap growth stocks ever since the Federal Reserve began to increase interest rates in March 2022. This trend can be explained by two factors.

First, established companies with a strong competitive advantage usually do not need to borrow money to fund their growth, so they are less sensitive to the Fed's interest rate actions. Second, the emerging themes of artificial intelligence (AI) and weight-loss drug sales have boosted the performance of several giant companies like , Nvidia, Novo Nordisk, and Eli Lilly, pushing their stock prices to record highs in recent months.

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Source Fool.com