The AI hype, gains in megacap stocks and/or hopes that the Federal Reserve might be nearing the end of its monetary tightening cycle have lifted equity indexes in recent weeks. But delve a little deeper, and most of the gains have been driven by three sectors – information technology, communications and consumer discretionary – and within those, just seven stocks have been responsible for the S&P 500’s 12% gain this year: Nvidia, Tesla, Google (Alphabet), Microsoft, Apple, Amazon and Facebook parent Meta.

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