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US market concentration and yields raise warnings for investors
Tech and AI now make up over 50% of the S&P 500’s footprint, while the article flags a rising term premium that could affect both stocks and bonds.
LiveMint Markets said US stocks and bonds look highly stretched on several measures and that the key uncertainty is whether investors are near an inflection point.
The outlet pointed to record highs in US markets alongside historic concentration and narrow breadth, adding that Treasury yields are elevated and could be interpreted either as a buying opportunity or as a risk to the equity rally.
LiveMint Markets also highlighted spiking “term premium” concerns, which it said could pressure both stocks and bonds, and noted that historically high AI-related profits and solid growth could keep the bull run going.
On concentration, the article said tech and AI stocks account for more than 40% of the S&P 500’s market cap, exceeding the dotcom bubble peak of the early 2000s, and that including AI-related companies lifts tech’s footprint above 50%.
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