Stock market concentration adds to pressure for AI to deliver

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A report from the FT yesterday gave a stark insight into the concentration of the US stock market, finding that half of the S&P 500’s growth since April has come from only five tech firms. These are Alphabet, Nvidia, Amazon, Broadcom and Apple, all of which, to different extents, are relying on AI to propel them to further growth. One cause for the concentration is the war in Iran, with energy prices dragging on performance by non-tech firms. This puts even more pressure on AI to deliver on its promises. If it does not, the global economy may be in deep trouble.