The S&P 500, the go-to benchmark for the U.S. stock market for decades, no longer accurately reflects the true health of the market. Over the past few months, the performance of this index has become increasingly disconnected from that of the average U.S.-traded stock. This divergence is explained by the market splitting into two camps: AI-linked companies and non-AI companies. Tech giants driven by artificial intelligence are pulling the index upward, creating a falsely positive picture of the overall market.
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