AI spending impact on S&P 500 hinges on tech earnings
Microsoft, Meta, and Amazon earnings could test the S&P 500 as investors watch AI spending and capex guidance.
Just 10 stocks now make up a record 38% of the S&P 500, increasing market concentration risks.
Alphabet reported Q2 capex of $44.9 billion and raised its full-year forecast to $195-$205 billion, with further increases expected in 2027.
Alphabet's shares fell 9% over five sessions and closed below its 200-day moving average after its AI spending announcement.
Evercore ISI strategist Julian Emanuel warned that rising index concentration has significantly increased risks.
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