Via a note from Barclays, in brief. Analysts there are nervous over 'mega-cap' stocks inflating the index, which intensified after the banking crisis.

  • “Mega-cap outperformance is not unusual in historical instances of heightened stress, so Big Tech multiples could see near-term support at current levels even after leading the market throughout the recent flight to safety,”
  • “We would caution against an overly bullish interpretation (e.g., the rest of the market is cheap) as equities are still exposed to earnings risk and we see few upside catalysts, leaving risk/reward skewed asymmetrically to the downside,”

A potential bullish sign is acknowledged though:

  • “The immense potential for AI also provides medium-term support, but it is too early to assess the full impact.”



Globex is open with the benchmark index little net changed now:

spx globex open mega cap 22 May 2023

(This chart is from our charting app, which is free and can be found at this link)