India, July 27 -- The S&P 500 could face a big drop this week if Microsoft, Amazon, and Meta report huge AI spending that shows no signs of slowing down. This is because these companies have a massive influence on the index. The US stock market has become heavily dependent on artificial intelligence companies. Investing in the S&P 500 today is increasingly like investing in AI because a small group of tech companies now dominates the index.

Just 10 stocks now make up a record 38% of the S&P 500. This is much higher than the previous peak of 27% during the dot-com boom, showing how concentrated the market has become, according to Yahoo Finance. This high concentration has increased risks for investors. If one or two of these large compani...