TechFlow News, June 3: Institutional data shows that the S&P 500 Index has recently hit successive new highs; however, this rally has been driven primarily by a handful of leading AI stocks, while market breadth has noticeably weakened.
BTIG analyst Jonathan Krinsky noted that even if small- and mid-cap stocks rebound, a slowdown in the momentum of large-cap stocks would likely fail to prevent a broader index pullback—and he forecasts a potential turning point in market trends for June. Data reveals that the S&P 500 has recorded six consecutive trading days where the index closed higher despite more decliners than advancers—a rare occurrence.
According to Deutsche Bank data, as of the end of May, the S&P 500 had risen over 16% cumulatively in the past two months—one of the swiftest rallies since World War II. Historically, similar rapid advances not occurring in the wake of a recession were seen only immediately before the 1987 stock market crash.
