The Vikings of Wall Street?
These are the giants driving the S&P 500!
Friends, if you thought you'd seen it all, these numbers are going to knock you off your feet!
The S&P 500 has soared since the beginning of the year (about 14%), but you should know who is really pulling the strings behind this historic rally. This is a story of power concentration that simply cannot be ignored...
In first place?
No, it's not Nvidia
The one and only - Google!
Alphabet, better known as Google, alone accounts for a staggering 19.4% of all gains generated by the S&P 500 index since the beginning of the year!
Do you realize?
Almost a fifth of the entire index's rise stems from the performance of a single stock!
No less than $1.3 trillion (yes, trillion!) was added to its market cap this year - an extreme growth rate.
In second place?
Indeed, the queen Nvidia ($NVDA)
In a respectable second place stands Nvidia, some would say the engine of the artificial intelligence (AI) revolution.
Nvidia accounts for 16.0% of the S&P 500's gains since the beginning of the year.
This represents a contribution of +$1.05 trillion to the S&P 500's market cap.
These figures are historic and highlight one critical point:
The current rally is largely driven by a handful of tech giants, just two stocks that together account for over 35% (19.4% + 16.0%) of the entire index's return.
Following them are Broadcom $AVGO and Microsoft $MSFT, which generated +$520 billion and +$380 billion, respectively.
In total, the top 10 stocks represented 59.4% of the S&P 500's gains since the beginning of the year.
In other words, the remaining 490 stocks represented only 40.6% of the S&P 500's rise.
This concentration is so strong that today a situation occurred in the market that hasn't happened in a long time: the S&P 500 index was green, while Nvidia was red...