The S&P 500 is a U.S. stock market index of roughly 500 large listed American companies, widely used as a benchmark for the overall market. Recent coverage has focused on AI's effect on it: 42 AI-related stocks are said to have driven about 67% of its gains since 2024, and it hit a record high on AI bets. Larry McDonald argued AI markups are distorting true earnings power, while European stocks posted their biggest weekly outperformance versus the S&P 500 since March as investors rotated away from the AI trade.
European stocks outperform S&P 500 as investors rotate away from AI tradeEuropean equities rose, posting their biggest weekly outperformance versus the S&P 500 since March, as investors rotated away from the AI trade toward defensive sectors and some positive earnings news boosted the region.
AI Markups Distort S&P Earnings Power, Larry McDonald SaysLarry McDonald, founder of The Bear Traps Report, says AI-related markups are distorting the true earnings power of the S&P 500. His remarks come as traders await earnings season and inflation data that could shape the Fed outlook, with stocks fluctuating near record highs.
42 AI Stocks Drive 67% of S&P 500 Gains Since 2024Moneycontrol reports that 42 AI-related stocks have driven roughly 67% of the S&P 500's gains since 2024, underscoring the sector's outsized influence on the U.S. market. The piece frames the concentration of market bets on AI under the headline 'AI is all that matters.'
S&P 500 hits record high on AI bets as oil dropsStocks rose for a fourth straight session as oil prices fell, with the S&P 500 up nearly 1% and heading toward its first record close since August, buoyed by AI trade enthusiasm and optimism over corporate resilience.
Bloom Energy CEO: AI infrastructure drives power demandBloom Energy rang the NYSE opening bell to mark its 25th anniversary, days after joining the S&P 500. CEO K.R. Sridhar said the company's on-site power systems are becoming a standard solution as demand rises from data centers, factories and hospitals, highlighting its role in powering AI infrastructure.
Amid Market Hurdles, AI Remains an Earnings TailwindDespite worries over the Iran war, inflation, a hawkish Fed and soaring bond yields, the S&P 500 is up nearly 12% this year as of Sept. 19. FactSet's John Butters notes third-quarter earnings are projected to grow 28.7%, the third straight quarter of at least 25% growth, with AI seen as a key tailwind.
AI profit growth to reach every S&P sectorBloomberg reports the next earnings season should be broadly strong as AI investments start translating into profit gains across S&P 500 sectors.
The A.I. Daily