Monday’s report from JPMorgan’s Chief Global Markets Strategist Marko Kolanovič’s analytical team.

Total:

• The U.S. stock market is seeing its reliance on a handful of megacap names grow at its fastest pace in 60 years, surpassing what was seen during the dotcom bubble that peaked in March 2000.
• moreover, the accumulation of growth stocks included in the S&P 500 index reached the 97th percentile on an historical basis, the highest since the Internet company bubble
  • A sell-off catalyst may include an event such as:
  • deep recession
• a sudden revival of inflationary pressures

• “The peak of this concentration episode should coincide with the declining interest in [the generative AI/large-language model] theme from investors or when using more rationalization after the initial AI frenzy”