Yahoo Finance·2025-11-02 13:00Market Performance - The S&P 500 Index has surged 18% since Trump's election win on November 5, reaching an all-time high and ending October on a six-month winning streak [1] - A version of the S&P 500 that strips out market-cap bias is up just 5.2% for the year, indicating the significant impact of Big Tech and AI on overall market performance [4] Impact of Big Tech and AI - Big Tech companies, particularly Nvidia, Apple, and Alphabet, have driven substantial market gains, with Nvidia becoming the first $5 trillion company and the seven largest tech firms accounting for over half of the market's advance [5] - The median stock in the S&P 500 has only gained 1.2%, highlighting the disparity in performance between tech stocks and other sectors [4] Volatility and Policy Uncertainty - Market volatility has been significantly influenced by Trump's trade policy changes, with tariff threats causing the highest level of policy uncertainty since 1900 [2] - The AI rally has been juxtaposed with ongoing policy-induced volatility, particularly around tariff threats, affecting individual companies and industries [7] Investment Trends - Investors have increasingly focused on AI-related firms, with a notable shift away from defensive sectors during periods of market turmoil [6] - The belief in AI's potential for future advancements has led to a surge in investments in this area, leaving other market segments behind [6]