25 Sep 2026

SOMETHING VERY STRANGE IS HAPPENING IN THE STOCK MARKET

The S&P 500 is near an all-time high. Nearly half its stocks are moving to a different beat. Goldman Sachs says the divergence resembles the market dynamics of the tech bubble. The top 10 stocks now account for roughly 40% of the index. Many are riding the AI boom. At that size, they can lift the S&P 500 even as a broad swath of stocks struggles. For other companies, the backdrop is tougher: higher bond yields, oil above $100, a stronger dollar and rising borrowing costs. Businesses exposed to interest rates, energy prices and the wider economy feel those pressures most. The index is telling you where the biggest stocks are going. It is telling you much less about the experience of the average stock. Source: Bull Theory, GS

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