S&P 500 Hits Record High Amid AI Stock Surge

The S&P 500 index reached a record closing high on the last trading day of May, with only a few component stocks achieving new highs, primarily in the artificial intelligence sector. According to Odaily, this has raised concerns about structural imbalances in the market. Analysts note that while the index continues to hit new highs, the gains are concentrated in a few major tech stocks, with market divergence nearing historically extreme levels, potentially indicating accumulating risks. Data shows that last Friday, only 20 S&P 500 components reached all-time highs, with just seven unrelated to artificial intelligence. Michael Hartnett, a strategist at Bank of America, highlighted the similarity of this trend to the peak of the internet bubble in 2000, when only about 20 stocks hit new highs. Hartnett warned in his latest report that speculative sentiment persists in the market, but with high interest rates and global central bank tightening, a market turning point may be approaching. He advised investors to gradually shift towards defensive asset allocations. The rise in U.S. stocks in May was mainly driven by the semiconductor sector, with Micron Technology up 87.8%, Advanced Micro Devices up 45.6%, Samsung up 43%, and SK Hynix up 81%, contributing to a 25% cumulative increase in the Nasdaq index from April to May, marking its best two-month performance in over two decades.