The narrow foundations of the current rally — one company is responsible for half of S&P 500 earnings revisions

MarketWatch reports that the current S&P 500 rally is narrowly based: Goldman Sachs estimates Micron Technology has contributed 51% of the S&P 500’s earnings-per-share revisions since the Iran war began. Three oil majors (Exxon, Chevron and ConocoPhillips) account for a further 29% of revisions and Broadcom about 10%, while the median S&P firm has seen no revision. Thanks to the concentrated contributions from chips and oil, the market’s P/E is about 5% lower than in January. The S&P 500 gained 4.5 last week and the Nasdaq jumped 6.8%; 94 S&P companies are due to report this week, a key test for estimates. Risks include the war hitting demand and costs, while AI spending could boost upside.