The market’s relentless rally has pushed the S&P 500 up nearly 25% from its October lows, fueled by gains in only a handful of stocks.
Leading the charge is AI favorite Nvidia (NVDA). The chipmaker has gained more than 80% since the start of the year, helping drive the S&P 500 (^GSPC) and Nasdaq (^IXIC) to record levels.
The concentrated outperformance has prompted some on Wall Street to warn the rally has gone too far and declare stocks are in bubble territory.
Market concentration has surged to a multi-decade high. The 10 largest US stocks now account for 33% of S&P 500 market cap and 25% of S&P 500 earnings, according to Goldman Sachs data.
But concerns over narrow market participation and frothiness may be misguided. Several top Wall Street strategists made it clear on Yahoo Finance’s “Morning Brief” last week that there’s reason to believe the market will keep going up.
“This might be the best sell side trick out there right now… I don’t think that’s justified,” Citi US…
2024-03-10 09:00:03
Original from finance.yahoo.com