Because the S&P 500 and Nasdaq 100 indices proceed to notch new all-time highs, it’s clear that the rising tide has not lifted all boats.Sharp-eyed analysts and buyers have famous some discordant options in a inventory market at its peak, elevating questions concerning the euphoria that presently reigns supreme on Wall Avenue.Mega-Cap Dominance Unprecedented Since Late 2008The dominance of mega-cap shares hasn’t been this pronounced in practically sixteen years. The highest 100 U.S. shares by market capitalization, monitored by way of the iShares S&P 100 ETF OEF, have by no means been stronger in opposition to the Russell 1000 Index, as tracked by the iShares Russell 1000 ETF IWB, since December 2008-.David Morrison, senior market Analyst at Commerce Nation, commented, “There are issues concerning the US market’s lack of breadth with a lot of the general efficiency concentrated within the inventory worth of some companies. In reality, the 5 greatest corporations by market capitalization within the S&P 500 account for practically 30% of its worth. The scale and outperformance of this choose group is mirrored in its valuation, which is manner above that of the remainder of the constituents.”Poor Participation In Market RallyThe present bull market rally lacks broad participation, with only some corporations driving the main indices larger.The cap-weighted S&P 500 Index, tracked by the SPDR S&P 500 ETF Belief SPY, has surged to ranges final seen in November 2008 when in comparison with its equally-weighted counterpart, represented by the Invesco S&P 500 Equal Weight ETF RSP.“We’ve not had a four-week span the place the US inventory market has gone up a lot with so many shares inside the market happening, primarily based on information going again to 2002,” stated Luke Kawa, markets editor at Sherwood.SentimenTrader in a publish on social media X, signifies that whereas the Nasdaq 100 continues to attain report highs, a lot of its constituent shares are underperforming, dropping to month-to-month, quarterly, and even yearly lows and falling beneath their 10-, 50-, and 200-day transferring averages. “This isn’t regular. In reality, it’s by no means occurred earlier than to this diploma. There’s a chance that the typical inventory will catch as much as the index, that isn’t how issues often pan out. Virtually by no means, in truth. Danger is excessive in that index,” they wrote.Tech Supremacy Surpassing Historic ExtremesThe tech sector has been the first driver of the intense relative valuations amongst main U.S. inventory indices. The Nasdaq 100, when in comparison with each the Dow Jones Industrial Common and the Russell 2000, is at historic highs, surpassing earlier peaks seen throughout the dot-com bubble and in December 2021 on the finish of the ultra-low rate of interest period.Learn now: US Funds Crunch: CBO Warns Federal Curiosity Prices Now Greater Than Protection Spending, Deficits To Stay Above 5.5% Till 2034Image created utilizing synthetic intelligence through Midjourney.