Mega-cap tech companies are driving stock market growth through AI investment, accounting for a third of the S&P 500’s market cap. Concerns arise about the concentration of these companies but they operate across diverse industries, offering a variety of goods and services. The tech companies are heavily investing in AI, with spending contributing more to GDP growth than consumer spending.

AI investment in the economy has been a hot story, with spending by major tech companies accelerating. Recent data shows that AI capex is contributing more to GDP growth than consumer spending. While the economy remains healthy, growth is cooling from previous levels. Hard economic data continues to hold up despite soft sentiment data lagging.

Economic growth is cooling as major tailwinds fade, but the stock market outlook remains positive with robust earnings growth. Long-term investors should expect risks like political uncertainty and economic downturns. Investing is never a smooth ride, but the long game of the market remains undefeated, offering opportunities for long-term growth and wealth building.

Read more at Yahoo Finance: Mega-cap tech companies lead the markets higher