The US stock market is sitting at all-time highs, but the rally has been unusually narrow. Almost all the gains have come from a few megacap tech names. Since April, the S&P 500 has jumped about 27%, with the “Magnificent Seven” now making up roughly one-third of the index. Nvidia alone accounts for around 8%, while Microsoft and Apple make up about 7% and 6%. Together, those three represent more than a fifth of the S&P. That raises a simple question: can a rally powered by so few stocks keep going, or is momentum starting to crack?
Earlier this year, energy stocks had some serious tailwinds behind them. Rising oil prices, stable earnings, and talks of a Fed pause helped push the sector higher. The Energy Select Sector SPDR Fund (XLE), which holds a mix of top oil and gas companies, caught a decent bid. For a while, it looked like it might keep going. But lately? That momentum has slowed. Prices are starting to fall, and a few technical signs are flashing yellow. So, is this just a mid-year pause, or are we seeing the early signs of something more? Let’s break it down.
The Nasdaq-100 is back in the spotlight again. After climbing more than $23,100 so far this year, the index has pushed into uncharted territory, thanks in large part to a powerful rally in AI-linked tech stocks and solid results from the biggest names in the game.
