Front page report from The Washington Post in the United States: In February 2025, the S&P 500 index once fell into a stagnation, and then saw an unexpected surge driven by the AI investment boom. Tech giants that have significantly increased their strength through AI software capabilities have outperformed the broader market. Since November, the index has risen more than 5%.
Outside of the AI investment boom, the index's performance has been relatively weak.
The group of tech companies with trillion-dollar market capitalizations known as the "Big Seven" — Apple, Microsoft, NVIDIA, Amazon, Meta, Alphabet, and Tesla — have been the core driving force behind this surge. This is mainly due to corporate spending on artificial intelligence, as well as investor interest in related areas such as artificial intelligence, robotics, quantum computing, and autonomous vehicles.
However, economists and investors are concerned about an aspect of the AI investment boom that has not been sufficiently discussed: it puts the other 493 companies in the S&P 500 at a disadvantage. This means that beneath the surface of this rally, there is a more bleak picture: smaller companies' sales are declining, and manufacturing investment is also decreasing.
"You can see the impact of de-globalization and tariffs, as well as the impact of slowing economic growth."
Original source: www.toutiao.com/article/1849685901704202/
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