This week alone, the S&P 500 set three records. This brings the total number of times in 2024 that the composite market index closed at a record high to 42 times. But high prices to some extent obscure the reality of what’s going on beneath the market surface. The S&P 500 moved in tandem with de facto market leader Nvidia, up 4.6% for the week. In the third quarter alone, the correlation between Nvidia and the S&P 500 was nearly 86%, according to FactSet data. Meanwhile, all four sectors of the S&P 500 (real estate, financials, energy, and healthcare) ended the week lower. .SPX NVDA 5D Mountain The S&P 500 still ended the week on a high despite a slight rebound from Friday’s gains. “The stock market is driven by profits, and the companies that generate the most profits will lead the market,” said Michael Rosen, managing partner and chief investment officer at Angeles Investments. “The leadership of NVDA and others is well explained by its superior profitability.” Nvidia’s gains this week also helped the artificial intelligence darling regain its $3 trillion market cap. Friday’s closing price was $3.086 trillion. According to Alpine Macro Equity Strategy, Nvidia is the only broad-based semiconductor stock to outperform the large-cap semiconductor index. The company’s rise from its peers has left Nvidia “isolated at the top,” the company said. These moves come as September trading ended on an unusually strong note. This month is typically the worst period of the year, but so far the S&P 500 has a 1.6% lead. The Nasdaq rose 2.3% in September, while the Dow Jones Industrial Average rose 1.8%. Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said the rally to all-time highs leaves pressing questions about whether the market can continue rising in the short term. “Where we’re at right now, we’re trading a little bit above[the S&P 500’s]5,700. It’s kind of hard to justify getting really excited over the next few months,” Calvasina said on CNBC’s “S&P 500.” Squawk on the CNBC. Friday Street”. “If we take a long-term view of 12 to 18 months, we can get back into the bull market.”