05United States · Technology and markets
America’s earnings boom is broader than a bubble—but far narrower than the index
Facts
Nvidia and Micron account for 34% of expected third-quarter S&P 500 profit growth, while ten companies account for roughly two-thirds, The Wall Street Journal reports.
InterpretationThat concentration makes pensions and household wealth sensitive to a small set of capital-spending assumptions. The counterevidence matters: companies outside the leaders are still expected to grow profits, so concentration is a vulnerability rather than proof of a dot-com replay.