Does the fate of the entire market depend on one company? The concentration of the chapter and investor attention is extreme

Nand the small stock markets are not surprised that it all revolves around the title. You in Prague. The same thing happens even in the world’s largest market, which is the American one. Moreover, we are in a situation where investors stick to these companies also because other supporting factors are missing.

For the entire first quarter, the growth of American stocks was dominant on the topic of artificial intelligence, otherwise it fell aside. As it turned out, the steep growth got tired after a while, and doubts about the pace of the rise grew. Investors quickly realized that the favorable insight for the rate year, which they had agreed upon, had disappeared in the meantime. And we are entering the results of the season, it is most likely a confirmation that the growth of the economy does not necessarily mean a profit.

American companies (S&P 500) saw a year-on-year increase of only two percent in the first quarter. However, the seven largest can show a growth of 38 percent, also for the rest of their own, a decrease. These seven states and “Mag 7” at the current extreme concentration represent about a quarter of the total value of the market. And among these seven biggest technology names, the performance for the first quarter is due to the massive growth of Nvidia.

The markets are in a situation where there is no other source of potential optimism in front of them, not primarily the results of large technology companies. Investors are therefore often nervous and react extremely sensitively to forces and insights. In the last few days, we have seen it at Tesla and Meta events, from which the changes in the windows for many of the companies immediately followed.

Nervousness and twists and turns will continue until the last and longest year results are announced in the second half of May. Nvidia, the company that AI fever took to the skies. After gaining insight into her needs and profits in a huge way, she was able to make her full and stick to her insights. Repeatedly. They are therefore high and extremely concentric to one point. Everyone will be in suspense if Nvidia will raise its profit by more than 400 percent and how it gave rise to the posts.