<div id="readability-page-1">Record highs, weak breadth: The S&amp;P 500 is rallying to new peaks despite fewer than 60% of its stocks trading above key moving averages, echoing late 1990s patterns. Historic divergence alert: Nearly 10% of S&amp;P 500 stocks hit 52-week lows while the index hit highs — a first in market history, raising concerns about rally sustainability. AI-led concentration: AI capital spending is driving gains, but broader participation is lacking, leaving the market vulnerable to shocks from inflation or Fed policy.</div>

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<p>The S&P 500 has reached record highs, but with fewer than 60% of its stocks above key moving averages, raising concerns about the sustainability of the rally. Nearly 10% of S&P 500 stocks have hit 52-week lows while the index rises, marking a historic divergence. The gains are primarily driven by AI capital spending, but the lack of broader market participation leaves it vulnerable to inflation and Federal Reserve policy changes.</p>

- The S&P 500 is reaching record highs, but less than 60% of its stocks are above key moving averages, reflecting a pattern from the late 1990s.  
- A historic divergence is noted as nearly 10% of S&P 500 stocks reached 52-week lows while the index is at all-time highs, raising questions about the sustainability of this rally.  
- AI-driven capital spending is boosting the market, yet the lack of broad participation increases vulnerability to potential shocks from inflation or Federal Reserve policies.

S&P 500 hits record highs despite historic breadth warning