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Adam Khoo, executive chairman and co-founder at Adam Khoo Learning Technologies Group, states that over the past month, the Dow Jones Index has been outperforming the Nasdaq 100 Index.
According to Khoo, this shift reflects an early-stage rotation out of AI capex-heavy sectors in the Nasdaq 100 and into so-called "anti-bubble" sectors within the Dow Jones, with momentum increasing sharply in recent weeks.
Khoo previously highlighted that AI-related stocks now account for a record 45 percent of the S&P 500. In May, he warned that U.S. markets could face sharp declines after Korea’s KOSPI index dropped 10 percent and investor margin calls triggered liquidations, according to a recent note. The developments come as market concentration and sector rotations remain in focus.