34% of the S&P 500's Value Comes From Just 8 Stocks

The S&P 500 index is a benchmark used to gauge the broader U.S. market. Its 500 large-cap and megacap components come from every sector of the economy, and reflect investing categories from value to growth. As those companies account for about 80% of the value of the U.S. stock market, the S&P 500 makes a fairly good proxy for it.However, each company's weight in the index is proportional to its market cap, and some companies have in recent years grown so big that now, just a few have a disproportionate amount of influence over it. Today, more than one-third of the S&P 500's value comes from just eight companies.If you follow the market, it should be no surprise that the broader market has become concentrated. High-flying tech and artificial intelligence stocks surged in price, with their gains offsetting hundreds of underperformers in the S&P 500 and carrying the index to a roughly 26% broader gain in 2024 (as of Dec. 27). Over the last two years, the S&P 500 is up by more than 55%. Here are the eight stocks that now make up roughly 34.4% of the market and their weights in the S&P 500:Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool