Since the beginning of this year, the overall rally of U.S. stocks has become more and more concentrated, but the "seven sisters" of U.S. stocks (Apple, Microsoft, Google's parent company Alphabet, Amazon, Nvidia, Tesla, Meta) have come out of the divergent trend, and the three companies with poor performance have been replaced by Berkshire, Eli Lilly, and AMD. According to Zhoudao, the rally in U.S. stocks is more concentrated than in 2023, and compared with the 4% increase in the S&P 500 index, the equal-weighted version of the S&P 500 index is only 02%。Last year, the top seven companies contributed about 60% of the market's gains, and so far this year, 80% of the market's earnings have been provided by them. Michael Grant, head of strategy at Calamos Investments, said:
You'll see a further widening of the gap between the large caps, and the overall earnings outlook is bleak except for these companies.Relevant data shows that there are 271 stocks in the market this week From the annual data, half of the S&P 500 has averaged over the past year. At the same time, as the focus shifted from AI hype to concrete results, the giants gradually diverged, with Apple, Tesla, and Alphabet falling behind, replaced by Eli Lilly, Berkshire, and Nvidia rival AMD.
The top seven leaders of the U.S. stock market "translocation".With the release of the latest financial reports, the collective rally of the "Seven Sisters" of U.S. stocks based on the artificial intelligence boom has been broken, and the gap between giants has gradually expanded. Four of the seven continued to outperform, but Alphabet lagged behind, with Tesla and Apple being the biggest drags, with the latest earnings report showing an unexpected weakness in Apple's sales in China and Tesla being hit by slower growth. 
Under the change of situation, the market value of Berkshire and Eli Lilly, the manufacturer of "** medicine", has surpassed Tesla. Eli Lilly's share price has performed strongly on the back of strong demand for new drugs, with its share price nearly doubling in the past year, highlighting that there are other themes besides artificial intelligence that are fueling investor enthusiasm. 
The analysis pointed out that the decline in inflation triggered hopes of interest rate cuts, which drove a broad range of U.S. stocks at the end of last year. However, in recent weeks, investors have been downgrading their expectations for interest rate cuts. Lower interest rates will boost investors' valuations, with the Fed still expected to start cutting rates later this year, but with most of the rate cut benefits already priced in, most investors don't see a further rise in P/E ratios, increasing the importance of earnings in driving stock prices. Vishal Vivek, a strategist at Citi's trading department, said:
Heading into earnings season, investors are already very bullish on some of the best stocks, so the bar is higher to outperform, and companies need to provide additional tailwinds to gain investor favor and drive the stock price.Sign up for the closed-door private class of Lan Xiaohuan, the author of "Staying in the Matter".Take you to understand the new opportunities brought by economic transformation to enterprises and individuals
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