The performance of the S&P 500 index is now the most concentrated it has been since the 1970s.
A surge in the S&P 500 is dominated by tech stocks masking humdrum performances for the vast majority
At first glance, the pessimists are taking a beating. The consensus was for an economic recession to hit the US, dragging stocks down.
Seven of the biggest constituents — Apple, Microsoft, Google owner Alphabet, Amazon, Nvidia, Tesla and Meta — have ripped higher, gaining between 40 per cent and 180 per cent this year.
The remaining 493 companies are, in aggregate, flat.
The chipmaker Nvidia has gained $640bn in market capitalisation just this year. That is almost as much as the combined market worth of JPMorgan and Bank of America, the two biggest banks in the US.
For now, market bulls and bears alike are using this narrow markets phenomenon to further their case.
FT 15 June 2023
The seven companies driving the US stock market rally | Financial Times (ft.com)
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