Tech Giants Face Tough Task to Sustain Second Half Stock Rally

  • Nvidia alone accounts for nearly 30% of the S&P 500’s advance
  • Valuations are elevated and profit growth is poised to slow
BlackRock’s 2024 Mid-Year Outlook Focuses on AI Stocks

The world’s largest technology stocks drove a banner first half for the S&P 500. The question for the rest of the year is whether their strength continues.

Wall Street has tilted toward the tech sector to a historic degree, raising the stakes should the AI-fueled rally falter. Valuations are stretched, while earnings growth is poised to slow from here.