Schwab Strategist Flags S&P Growth Concentrated in Nvidia, Micron
Schwab strategist says two chipmakers drive a third of S&P earnings growth as Bitcoin tops $80k.
A strategist at Charles Schwab has warned that the U.S. stock market's earnings growth is heavily dependent on a narrow group of companies. According to the strategist, just two firms are responsible for a large share of the overall expansion in S&P 500 profits.
Among the biggest contributors are chipmakers Nvidia and Micron, which together account for roughly one-third of the index's earnings growth over recent quarters. That concentration raises concerns about how broad-based the market rally really is, particularly if those companies stumble.
Separately, Bitcoin briefly climbed above $80,000, a level traders linked to rising stress in the bond market. The move adds to a period of heightened volatility across risk assets as investors weigh the outlook for interest rates and economic growth.
The strategist's remarks highlight a growing debate about market breadth, with some analysts cautioning that a handful of large winners are masking underlying weakness in other sectors.