Stocks hit record highs as market breadth weakens

U.S. stocks returned to record levels on Friday, but the latest rally is showing signs of narrowing beneath the surface. The S&P 500 rose more than 10% in April, helped by strong earnings from the Magnificent Seven and a renewed appetite for risk. By contrast, equalweight measures of the market lagged, suggesting that fewer stocks are carrying the advance. The Invesco S&P 500 Equal Weight ETF gained about 6% last month, well behind capweighted benchmarks, while technology and a few large consumer names did much of the lifting. Analysts said the pattern does not point to an immediate shift to cash, but it does raise concern that the market’s strength depends heavily on a small group of highperforming companies. They also noted ongoing risks from inflation, geopolitical disruptions, and the seasonally weaker stretch that often begins in May.