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Wall Street concerns over a potential S&P 500 correction have intensified as a narrow group of artificial intelligence beneficiaries drives the benchmark to record highs while the majority of constituents remain well below their peaks.
The Kobeissi Letter noted in an Oct. 14 post on X that only 10 stocks, all linked to the AI boom, have generated 70% of the index's gain since March 30.
This concentration is amplified by the S&P 500's market-cap weighting, which gives outsized influence to tech giants like Nvidia, which alone represents 8.4% of the index.
Together, the top 10 companies, including Apple, Microsoft, Amazon, Alphabet, and Meta Platforms, account for nearly 40% of the benchmark. Despite the index hitting fresh closing highs on Oct.
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