The S&P 500 is a party where only the DJ gets to choose the music
AI stocks are leading the market, but most others are left in the dark.
The story
The S&P 500 is near its all-time high, driven by AI stocks like Broadcom and Nvidia, even though most stocks in the index fell.
Source: fortune.com
Our reading
The S&P 500 is flirting with its all-time high, but only because a handful of AI stocks are pretending the rest of the market doesn’t exist. It’s like a party where everyone’s dancing to the same song, but only the people on the dance floor are actually moving.
Meanwhile, the rest of the market is standing around, waiting for the DJ to play something they recognize. It’s not that they’re not trying—they’re just not getting the memo that the music has changed.
The S&P 500 isn’t a reflection of the economy; it’s a reflection of which companies can afford to buy the DJ’s favor.
