S&P 500 IS STARTING TO DIVERSIFY

The United States stock market has increased by a cumulative 95 per cent since the beginning of 2023. Analysts, however, expressed caution about the narrow breadth of the market. During the same period, the S&P 500 weight index increased by about 50 per cent, while the companies known as the “Seven Big” (including Google, Amazon, Apple, Meta, Microsoft, Inweida and Tesla) had a return of up to 150 per cent. The market capitalization rate of these equities rose from less than 20 per cent to 35 per cent. Since the beginning of June, this extreme concentration has begun to subside, and the collective share of the Seven has fallen to about 32 per cent. Semiconductor equities were among the first beneficiaries, and AMD, Micron and Intel companies attracted active institutional investors. The Health Care and Finance Unit has also shown signs of recovery, indicating that the market may be experiencing a major rotation. The CME Group launched a single stock future at the end of July, providing investors with new risk management tools。