S&P Rally Masks Losses Across 4-in-10 Stocks

U.S. stock gains are concentrated in a small group of AI-related companies: although the S&P 500 has risen sharply, more than 4 in 10 index stocks are down this year, and the median stock has gained only modestly. Higher interest rates and weak earnings growth outside AI are weighing on industrials and other sectors, prompting caution toward companies such as Shoals and Itron, which face profitability, cash-flow, sales or margin concerns. A separate market analysis sees possible signs of improvement among broader, equal-weighted stocks, even as semiconductor shares appear to be losing momentum and may be due for profit-taking. Company-specific warnings also point to structural challenges at Lululemon, The Trade Desk and Charter Communications, whose shares have fallen sharply amid concerns about market-share losses and weakening business performance.