Nvidia and five tech giants now command 30% of the S&P 500 Index
The S&P 500 Index is now dominated by the six major US companies, Microsoft Corp., Apple Inc., Nvidia Corp., Alphabet Inc., Inc., and Meta Platforms Inc., marking a notable shift in market dynamics.
The six biggest US companies now command a greater share of the S&P 500 Index than ever before., , , , Amazon.com Inc. and account for 30% of the benchmark, up from about 26% at the start of the year, according to data compiled by Bloomberg. The S&P 500 is weighted by stocks’ .
BloombergThe uptick has been driven by Nvidia, which has rallied 20% since a bullish sales forecast last week showed that spending on remains strong. The has added $1.6 trillion in market value this year and is close to overtaking Apple as the world’s second-most valuable company.
Large companies have always dominated the S&P 500 but not to this extent. For most of the past three decades, the percentage weighting of the six biggest stocks in the benchmark was in the teens. It wasn’t until 2020 that the concentration exceeded 20%.
In another sign of a shift in the market, even at the height of the dot-com bubble in 2000, only three of the biggest six were technology companies — Microsoft, Cisco Systems Inc. and Intel Corp. The other three were General Electric Co., Exxon Mobil Corp. and Walmart Inc.
We have to continually be jumping off cliffs and developing our wings on the way down.' – Kurt Vonnegut
Source: Stocks-Markets-Economic Times
