As an analyst, I’m observing that the S&P 500 is really on a tear. We’ve seen it hit record high after record high throughout 2026, and it looks like Wall Street is celebrating a remarkably successful year.
If you remove the gains made by artificial intelligence stocks, the market’s recent progress largely vanishes, revealing that overall, it hasn’t really moved since February.
S&P 500 ex-AI Index Flat Since February as Benchmark Climbs 8%
Recently, BeInCrypto noted that stocks of companies involved with artificial intelligence now make up a record 45% of the total value of the S&P 500. Gains in major tech companies and those focused on AI have driven the overall index upward, as investors are optimistic about the future of this industry.
The S&P 500 has risen almost 7% since the beginning of February. Although the war in Ukraine caused market uncertainty and losses in March, the market rebounded strongly in April, increasing by 15.5% since March 30th.
While the market has generally seen gains, these haven’t been shared by everyone. Data from Google Finance shows that the SPXXAI index, which tracks the performance of US 500 companies excluding those involved in artificial intelligence, has actually decreased by 1.84% since it began tracking in February.
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Although the market has recovered from its low point in March, it’s only gained about 5%. This shows just how much the recent market gains are being fueled by stocks related to artificial intelligence.
Goldman Sachs previously noticed a growing difference in performance before the recent market gains. Over the past three years, up to early 2026, the S&P 500 as a whole rose by 76%, while the same index excluding companies focused on artificial intelligence only increased by 32%.
As I’ve been watching the market, it’s become clear that a small number of AI companies are responsible for almost all of the recent gains. This is starting to worry me because it suggests the current market rally is becoming overly dependent on investments specifically related to artificial intelligence, which feels unsustainable.
The surge in stock prices isn’t limited to the United States. A recent Bloomberg report highlighted that a rally in AI-related stocks across Asia is masking underlying problems in the market. Gains in tech companies are currently balancing out economic difficulties and investor concerns related to the situation between the US and Iran.
According to IG International market analyst Fabien Yip, a lack of positive economic factors beyond artificial intelligence is holding back company spending and future profit expectations, as businesses wait for more certainty regarding the ongoing conflict.
Although major AI companies are driving up overall stock market numbers, many other stocks aren’t performing well due to global political issues and a shaky economy.
Now, investors are increasingly focused on whether the recent growth driven by artificial intelligence can continue without needing further boosts.
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2026-05-11 13:11