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June 3, 2026

The only Kid in town

Technology has led markets for years, but the recent move has become exceptional.

The chart shows US technology stocks strongly outperforming the rest of the S&P 500. AI, semiconductors and the race to build digital infrastructure are now driving a large part of market performance.

This reflects real economic strength: today’s leading technology companies are highly profitable and dominant. But it also creates concentration risk. More and more depends on a limited number of companies and one dominant narrative: AI.

Technology may continue to transform the economy, but no trend moves in a straight line forever.

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