Odaily Planet Daily reports: On the last trading day of May, the S&P 500 closed at a record high, but only a small number of its constituent stocks also reached new all-time highs, most of which were concentrated in the artificial intelligence sector, sparking market concern over structural imbalances. Analysts note that although the index continues to hit new highs, the gains are concentrated among a few large-cap tech stocks, with market divergence approaching historical extremes—potentially signaling accumulating risks.
Data shows that last Friday, only 20 components of the S&P 500 reached all-time highs, with only seven of them having no direct connection to artificial intelligence. Bank of America strategist Michael Hartnett noted that this phenomenon closely resembles the peak of the 2000 dot-com bubble, when similarly only about 20 stocks hit new highs.
Hartnett warned in his latest report that current market speculative sentiment continues, but a turning point may be approaching amid high interest rates and global central bank tightening policies. He advises investors to gradually shift toward defensive asset allocations.
The May U.S. stock market rally was primarily driven by the semiconductor sector, with Micron Technology rising 87.8%, AMD up 45.6%, Samsung up 43%, and SK Hynix up 81%, propelling the Nasdaq Index to a 25% gain from April to May—the best two-month performance in over two decades. (Jinshi)