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Goldman Sachs gives harsh warning on market concentration
TheStreet80d agoneutral
Goldman Sachs gives harsh warning on market concentration

Goldman Sachs is sounding the alarm on what it sees as a dangerous concentration in the artificial intelligence-driven stock market rally. In a May 15 report, Goldman Sachs strategist Ben Snider said the S&P 500 has climbed 10% this year, but the gains have become heavily concentrated in ...

S&P 500, Nasdaq, hit record closing highs on AI optimism
Reuters Videos80d agoneutralVIDEO
S&P 500, Nasdaq, hit record closing highs on AI optimism

<body><p>STORY: It was a mostly upbeat Tuesday on Wall Street, despite a slight move downward for the Dow. The S&P 500 climbed about six-tenths of a percent and the tech-heavy Nasdaq added roughly 1.2%, with both indexes closing at record highs.</p><p>AI-fueled optimism offset concerns over Middle East peace talks, which were compounded by recent U.S. strikes on Iran.</p><p>:: Micron</p><p>Semiconductor stocks continued to lead the charge, with Micron Technology soaring 19%, hitting $1 trillion in market value for the first time after UBS more than tripled its price target on the stock.</p><p>But Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, finds the narrowness of market gains concerning.</p><p>"Just to paint a picture of the contrast in the markets from pre-Iran conflict to post, if you look through the market for the first couple of months this year, 65% of companies were outperforming the index. Since the conflict commenced at the end of February, just 24% of companies are outperforming the S&P 500. [FLASH] Any time you see a market that becomes more narrow, as a portfolio manager, as an investor, you start to question the longevity and resilience of that market."</p><p>Sticking with chip makers, shares of Qualcomm rose almost 4.5% after Bloomberg News reported the company reached a deal with TikTok owner ByteDance to supply chips.&nbsp;</p><p>Elsewhere in the market, shares of AutoZone tumbled nearly 9% - despite the company reporting quarterly profit and revenue that beat estimates - as higher costs and inventory investments continued to pressure margins.</p></body>

Ferrari Red—Heard on the Street Recap
The Wall Street Journal80d agoneutral
Ferrari Red—Heard on the Street Recap

Micron Technology and ON Semiconductor were the top gainers in the S&P 500, rising 19% and 9.3% respectively. Bonds rose and oil prices were mixed as the outcome of Iran negotiations remains unclear. The 10-year Treasury yield declined 0.080 percentage point to 4.490%.