Tech's Grip On S&P 500 Hits Record 39% As AI Rally Pushes Concentration Beyond Dot-Com Peak - Marvell Tec

Technology’s grip on the S&P 500 reached a record level, rising to 39% as an AI-driven rally pushed market concentration beyond the dot-com peak, according to the Kobeissi Letter. The report noted that tech’s weight has more than doubled since the 2020 pandemic, surpassing extremes last seen during earlier eras. It highlighted investor concentration risk as a narrow group of companies increasingly drives index performance while reducing diversification benefits. The S&P 500 closed higher for 11 of the previous 13 weeks and was on a nine-week consecutive winning streak, a pattern seen only 10 other times since 1957. Over eight weeks into late May, the index surged 17.3%. The article also cited macro sensitivities: inflation concerns tied to geopolitical energy shocks, potential Federal Reserve rate increases, and valuation at about 20.1 times forward earnings. It listed ETF closes for the day: SPDR S&P 500 ETF Trust at $759.57 and Invesco QQQ at $731.20.