The stock market took a narrow road to record highs last month

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Stock Market,Tech Stocks,Narrow Market

The stock market reverted back to its 2023 ways in May with six large tech stocks accounting for the majority of the gains in the S&P 500.

"We're seeing a relatively narrow market, and that narrowness has been increasing recently and really driven by fewer stocks," BMO Wealth Management US Chief Investment Officer Yung-Yu MaParticipation from the other 493 stocks in the S&P 500 had been a feature of runs toward record highs in the last six months, including late 2023 andIn May, the S&P 500 rose about 4% while the equal-weighted index was up less than 2%.

Ned Davis research chief US strategist Ed Clissold wrote in a note to clients that "several market breadth indicators" haven't followed the recent rally higher. Nvidia logo is seen during Impact'24 congress in Poznan, Poland on May 16, 2024. In a note to clients on Monday, RBC Capital Markets head of US equity strategy Lori Calvasina called this recent action a "sudden stall" in the rotation trade, citing a few catalysts giving investors reason for concern.has been most impressive for that group as well, with earnings being revised higher for large-cap tech stocks in recent weeks, Calvasina noted.

Cathie Wood's ARK Invest missed out on more than $1 billion in returns by selling Nvidia stock too early

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