S&P 500 breaches $70T market cap for first time as index tops 7,700

The S&P 500 has crossed the $70 trillion market capitalization threshold for the first time, with the index simultaneously pushing past the 7,700 level. To put that number in perspective, $70 trillion is roughly the combined GDP of the US, China, and Japan. The milestone caps a staggering run. The index hit $67.8 trillion on May 29, blew past $69 trillion by June 2, and kept climbing. The total US stock market capitalization reached $75.3 trillion as of July 1, with more than ten S&P 500 constituents individually worth over $1 trillion. The 7,000 level, which the index first crossed in January, already feels like ancient history. Big tech is doing the heavy lifting This rally has a familiar engine. A concentrated group of large-cap technology stocks has driven the bulk of the gains. Concentration risk is the phrase that keeps showing up in analyst notes. When a handful of companies account for an outsized share of an index’s total value, any stumble from those names sends ripples through the entire market. AI-driven earnings growth has been the narrative justifying elevated valuations for many of these tech giants. Some analysts have started using the B-word. Bubble. Not as...