Can the S&P 500 Outgrow the Megacaps? | Presented by CME Group

[music] Megaap tech, particularly AI stocks, continues to account for most of the gains in the cap weighted S&P 500, while its ecoe counterpart signals narrow market leadership and faces a key technical test as Q4 begins. Technology represents roughly 40% of the S&P 500, but only about 16% of the equal weight index. Equal weight itself has been testing key levels such as prior highs and moving averages. Recent sessions have seen it pushed to multi-week highs, consistent with attempts at stabilization after a stealth correction in the average stock. A sustained improvement in equal weight relative performance would signal healthier participation. In short, mega caps have carried the gains and the equal weight S&P 500 is at a critical test for whether breath improves into year end or whether narrow leadership remains the dominant and potentially riskier feature of the market. [music]