You Can’t Spell SPY Without AI: How the Stock Market Became a 1-Way Bet on the Future

That headline does not need a spell check. True, the letters “AI” do not appear in the ticker symbol for the SPDR S&P 500 ETF (SPY). Yet, artificial intelligence (AI) stocks dominate the index where it counts. In terms of weighting, AI stocks now comprise a whopping 51% of the S&P 500 Index ($SPX), according to recent data from JPMorgan Asset Management.

Investors who buy the S&P 500 assuming they are acquiring a broadly diversified cross-section of the American economy are in for a surprise. That’s what my chart work is showing me.