‘S&P 10’: the unprecedented concentration behind the US stock market’s rise
The S&P 500 is trading near its all-time high, but the increase is concentrated in very few stocks – a level of concentration never seen before in the US market. Since the March low, at the beginning of the war in Iran, the index has already risen 22% – but around 70% of the appreciation is explained by the performance of ten stocks, all from technology companies, such as Nvidia, Apple and Microsoft.
The S&P 500 is near its all-time high, but this growth is largely driven by a few tech stocks, including Nvidia, Apple, and Microsoft. Since March, the index has risen 22%, with around 70% of this gain attributed to just ten tech companies. Despite this concentrated growth, about 40% of S&P 500 stocks have accumulated losses this year, with 60% of those down over 20% from their highs.
The S&P 500's market capitalization is now 40% comprised of just ten companies, which could rise to 65% with the potential inclusion of SpaceX, Anthropic, and OpenAI.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
