Will AI Burst?
June 2, 2026
“You’re looking at roughly 50% of the S&P being concentrated in technology and technology-related stocks. It’s actually a little higher if you include names from other sectors. We haven’t seen that level of concentration since 2000.”
It looks like the equity market is following the rising temperatures, as earnings growth was almost double expectations this month. In June’s First Week video, Walter explains the data behind these market moves and how stretched AI stocks combined with depleting oil reserves could lead to some volatility as we move through the rest of the summer.
In this month’s video:
Exceptional Earnings: Growth nearly doubled expectations, helping push markets higher despite ongoing headline noise.
Depleting Oil Reserves: Global inventories are critically low, increasing the risk of higher oil prices and continued inflation pressure.
New Fed Mission: With inflation still elevated, the Fed is expected to stay cautious as markets begin pricing in potential future rate hikes.
Greenwood Capital is an SEC-registered investment advisory firm. This material has been prepared for information purposes only, is not intended to provide, and should not be relied on solely for tax, legal, or accounting advice. Subtitles are automatically generated.
