Commentary
The stock market is sending one message. The real economy is sending another. Investors looking at record highs in the S&P 500 may conclude that the North American economy remains strong. The evidence beneath the surface suggests a more complicated reality.
The U.S. stock market has surged over the past year, driven largely by a handful of technology companies tied to the artificial intelligence boom. The semiconductor sector has been among the strongest performers, and valuations across parts of the technology sector have reached levels rarely seen in modern history. Investor optimism remains high, but market performance is increasingly concentrated in a relatively small number of companies rather than broadly distributed across the economy….