Tech stock prices rising faster than earnings, concentrated gains in Big Tech, vulnerability ahead

From Yahoo Finance: 2024-07-01 04:10:04

Tech stock prices are rising far faster than their earnings, making the S&P 500 more vulnerable, says Apollo Global Management chief economist. The top 10 S&P 500 companies represent 35% of the market value but only 23% of earnings, indicating record bullishness on future earnings. Concentrated gains in Big Tech stocks could mask mediocrity in the rest of the index. Analysts warn of potential impact if Nvidia, for example, starts to decline. Funds increasingly concentrated in their top five holdings, with Wall Street analysts bullish about S&P 500. Predictions range from S&P 500 hitting 15,000 by the end of the decade to 8,000.



Read more at Yahoo Finance: A divergence in the stock market is now the biggest it’s ever been, signaling more vulnerability ahead, economist says