The top 10 S&P 500 stocks now make up 40% of the index, a record high. Morningstar warns of risks if tech earnings disappoint, citing high concentration. Potential threats include weak job growth and persistent inflation, making the market more vulnerable. Tech stocks moving together could lead to significant market impact, says Morningstar Wealth. There may be a market pullback soon, with potential threats emerging, like weak job growth. The Federal Reserve’s rate cuts may only benefit stocks if the labor market remains strong, warns Morningstar. Inflation could pose issues for investors, with tariffs impacting prices for businesses and consumers. Diversify your portfolio with international, small-cap, and healthcare stocks to mitigate risk, suggests Morningstar.

Read more at Yahoo Finance: Morningstar details 2 forces that could derail a stock market that’s historically dependent on Big Tech