AI Megacaps Carry Record-Setting Market as Rally Narrows
Only a quarter of S&P 500 companies were above their 50-day average at quarter-end, while AI-linked giants led index gains.
Key takeaways
- Citadel research found 25% of S&P 500 companies above their 50-day average at quarter-end.
- The S&P 500 gained 2% in Q3, while the equal-weight index fell 2%.
The S&P 500 and Nasdaq reached records, but gains are increasingly concentrated in AI megacaps. At quarter-end, only 25% of S&P 500 companies traded above their 50-day moving average, according to Citadel research.
In Q3, the S&P 500 rose 2%, while the S&P 500 Equal Weight fell 2% and the Russell 2000 dropped 7%. Nvidia, Apple and Microsoft together make up more than 21% of the S&P 500, according to Creative Planning data.
UBS strategist Ulrike Hoffmann-Burchardi said the rally’s breadth had narrowed. She warned against overexposure to a small group of market leaders and said broad diversification was important for managing risk.
This article was produced with the help of AI technology. Source: Yahoo Finance
