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Wednesday, July 3, 2024

The S&P 500 Just Did Something It Has Only Done Once in History, and It Could Signal a Big Move in the Stock Market

 

KEY POINTS

  • The S&P 500 outperformed the S&P 500 Equal Weight Index by more than 10% during the first half of 2024 due to the growing influence of a few artificial intelligence stocks.
  • In the past, when the S&P 500 has outperformed its equal-weight counterpart during the first half of the year, the S&P 500 has returned a median of 17.9% over the next 12 months.
  • Some analysts believe AI stocks are in a bubble reminiscent of the dot-com crash, but the facts simply do not support that theory.

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