BlockBeats News, May 11th, data shows that from May 2024 to June 2026, the S&P 500 Index has surged by 142%. However, excluding artificial intelligence stocks would plummet this number to 16%. AI stocks currently account for 45% of the total market capitalization of the S&P 500 Index, reaching a historical high for a single thematic sector within the index.
Capital Economics predicts that the S&P 500 Index will reach 7250 by the end of the year. However, achieving this target would mean the market will witness the highest-ever concentration in index composition in history.
Furthermore, caution is advised regarding the $1.4 trillion in AI-related debt, a figure that encompasses various forms ranging from corporate bonds issued by mega-cap firms to leverage positions in AI-related stocks. If future market credit conditions tighten, or if there is disappointing revenue growth announced by any major AI company, the $1.4 trillion in AI-related borrowing could vanish rapidly. (Cryptobriefing)
