Equity markets surged higher in October as third quarter earnings season was highlighted by strong showings amongst many large cap technology leaders. Investor enthusiasm for AI and cloud computing continued to dominate against a backdrop of easing monetary policy and restrained albeit sticky inflation. With markets pacing gains for six months in a row, investor sentiment appears bullish into year-end despite relatively high market concentration and elevated valuations. Speaking of market concentration, the top 10 stocks in the S&P 500 now account for over 40% of the index’s entire value. While not necessarily calling a market top, the combination of above average valuation levels and significant market concentration raises concerns regarding the potential path forward for the market cap weighted S&P 500. However, we remain optimistic that the foundation is being set for an eventual broadening in market participation or rotation into equity laggards and/or those firms well positioned to benefit from an easing rate environment.