U.S. stock market is set to witness major correction? That's the apprehension investors are currently having as the artificial intelligence boom accelerates in the Wall Street, stock market concentration is reaching historic proportions – and not just in the U.S. where tech megacaps like Nvidia and Alphabet dominate. Increasingly, top-heavy indices are a feature of global equity markets, not a bug.
The rise of the "Magnificent Seven" U.S. tech giants has amplified equity market concentration. The top 10 U.S. stocks currently account for 33 per cent of the overall market's value, according to Morgan Stanley analysts, and 37.5 per cent of the MSCI USA index.
