The Nasdaq is currently underperforming the S&P 500, a divergence that analysts view as a potentially negative signal for US equities.

Why it matters:

• Big Tech stocks have the largest weight concentration in the S&P 500
• They have been the primary growth engine of the US equity market in this cycle
• AI-related leaders dominate both momentum and index performance

If the Nasdaq weakens while the S&P 500 remains relatively stable, it may indicate:

• early distribution in high-multiple tech
• fading AI-driven momentum
• sector rotation into defensive or value names
• narrowing market breadth

Historically, sustained US equity rallies tend to require: 📈 strong leadership from mega-cap tech 📊 expanding participation 💰 consistent inflows into growth sectors

Without Big Tech strength, the broader index may struggle to maintain upside momentum.

The key question now: Is this temporary rotation — or the beginning of leadership breakdown?

⚠️🇺🇸 #stocks #USA #NASDAQ #SP500 #BigTech