"The outlook for US equities in 2024 has a rare complicating factor—the high concentration at the top of the S&P 500 Index, where the largest seven stocks represent more than 25% of the index by market capitalization. Lifted by investor enthusiasm for the potential of generative artificial intelligence (AI), these “Magnificent Seven” stocks led performance in a market otherwise weighed down by concerns about recession and tighter financial conditions as the Federal Reserve (Fed) worked to bring down inflation."
