The S&P 500 Just Did Something It Has Only Done Once in History, and It Could Signal a Big Move in the Stock Market
The S 500 (SNPINDEX: ^GSPC) outperformed the S 500 Equal Weight Index by more than 10% during the first half of the year, something that has happened just once before. A handful of artificial intelligence (AI) companies were responsible. The companies in question have become so big that they influence the index's performance to a significant degree.
Specifically, Nvidia alone has contributed 30% of the gains in the S 500 year to date. In addition, Microsoft, Amazon, and have collectively contributed 26% of the gains, and Apple and Meta Platforms have collectively contributed 11% of the gains. In short, six companies drove two-thirds of the upside in the S 500 through June.
Some analysts have described that phenomenon as a stock market bubble, and they have expressed concern that the growing clout of a few AI companies could lead to a dot-com-style crash. But history says the increasing concentration of the S 500 could be a good thing.
Source Fool.com
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