[U.S. Stock Market Rally Concentration Hits 35-Year High, Analysts Warn of Potential Pause] Jin10 News, May 21 – Driven by AI optimism and strong earnings reports, both the S&P 500 and Nasdaq have reached record highs. However, the current rally still lacks breadth, with most of the gains primarily contributed by large-cap tech stocks. UBS analysts pointed out that in the six weeks ending May 15, the market-cap-weighted S&P 500 outperformed the equal-weighted S&P 500 by the largest margin in at least 35 years. Given that much of the market's value growth is driven by AI-focused large-cap tech stocks, UBS recommends that investors reduce overly concentrated positions and guard against the risks of concentrated holdings. UBS also stated that as earnings season winds down and market attention shifts back to unresolved Middle East tensions, the market may enter a temporary pause. Ipek Ozkardeskaya, Senior Market Analyst at Swissquote Bank, noted that she has been closely monitoring the issue of market breadth. Currently, most of the gains are concentrated in a few tech companies 'priced to perfection.' 'If there’s any disruption to their pricing logic, we could see a collapse akin to a bubble bursting,' she warned.