The market has chip mania! Brett Witkowski breaks it all down in this week’s update.

The S&P 500 has run back to all-time highs, though where we find ourselves today is a head-scratcher. With many investors having hedged their funds, there are few sellers in the market right now.

On the geopolitical front, the conflict with Iran appears to have a potential off-ramp through diplomatic solutions.

What’s driving the market higher comes down to one word: chip mania. The Korean Stock Index has surged parabolically, largely due to chip exposure. While that momentum is exciting, it’s worth staying cautious when a narrow sector is carrying the broader market to such extremes.

Looking at the top 20 companies in the S&P 500, technology and chip companies dominate the list. In fact, roughly 40% of the S&P 500 is now made up of chip-related companies, meaning most investors in the index already have significant exposure to the sector, whether they realize it or not.