The S&P 500 could see a decline as stocks face historically high levels of concentration, according to Marko Kolanovic, former JPMorgan Chase (NYSE:JPM) chief market strategist.
Key Takeaways:

Kolanovic, speaking on Bloomberg’s Odd Lots podcast, warned that the dominance of the ten largest stocks is unsustainable and could trigger a cyclical downturn.
He expects the S&P 500 to drop from its record high above 6,000 to the 5,000s this year, with a potential further slide to the 4,000s if economic and political risks escalate.
His long-standing bearish outlook stems from concerns over slowing AI-driven momentum, geopolitical risks, and a possible U.S. economic slowdown.
New tariffs announced by President Donald Trump over the weekend have already shaken global markets, intensifying fears of volatility.
The emergence of a low-cost AI model from Chinese start-up DeepSeek has raised concerns about the sustainability of big-tech AI investments, causing a sharp selloff last week.

For deeper financial insights, explore:

Market Biggest Gainers – Track the latest winners in the stock market.
Sector Historical Performance – Analyze past trends across different sectors to assess future movements.

With AI developments, geopolitical tensions, and policy shifts shaping market dynamics, investors will be closely watching how the S&P 500 reacts in the coming months.