This year’s market rally has been a famously narrow affair, with a few mega-cap technology stocks accounting for the bulk of market returns, but that may finally be changing. Market breadth turned “strongly positive” in June, notes S&P analyst Howard Silverblatt.

Whereas only 124 S&P 500 stocks rose in May, 454 did so in June, with 155 gaining at least 10 per cent. All 11 sectors were positive.

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June’s rally was a broad affair, unlike previous months where a small number of high-flying tech stocks were dominating. That dominance still exists, says Silverblatt – despite a stellar first-half performance, market returns would have been negative were it not for the top 44 stocks. However, “that 44 was eight in May”, he adds, suggesting markets are becoming less reliant on high-flying mega-cap tech stocks.