As Nvidia joins the two companies with market values north of $3 trillion, Microsoft and Apple, the $3T Trio dominate the S&P 500 in historic fashion.
Joining Microsoft and surpassing Apple is quite an achievement, and it certainly helped the S&P 500 and Nasdaq hit new records Wednesday. But this trio now makes up more than 20% of the S&P giving them a disproportionate amount of sway.
[T]he rising tide that’s buoying Nvidia won’t lift all boats. It’s benefiting from ever-growing optimism about the possibilities of artificial intelligence. The chip maker, along with firms such as Taiwan Semiconductor and chip machine maker ASML, is selling something akin to what were picks and shovels in the gold rush—in other words, the hardware everyone will need to bolster productivity and profits…
As long as growth doesn’t lose too much steam, there’s every reason to think company earnings can continue to do well. Fed cuts would be an extra bonus. So while most stocks won’t move for the same reasons Nvidia does, they can certainly keep marching higher.
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MacDailyNews Note: The S&P 500 index is weighted by market capitalization
Top 10 S&P500 Companies by Index Weight
Based on the SPDR S&P 500 ETF Trust (SPY)
- MICROSOFT CORP (MSFT): 7.20%
- NVIDIA CORP (NVDA): 6.40%
- APPLE INC (AAPL): 6.24%
- AMAZON.COM, INC (AMZN): 3.76%
- META PLATFORMS INC, CLASS A (META): 2.36%
- ALPHABET INC CL A (GOOGL): 2.34%
- ALPHABET INC CL C (GOOG): 1.98%
- BERKSHIRE HATHAWAY INC. CL B (BRK.B): 1.66%
- ELI LILLY AND COMPANY (LLY): 1.46%
- BROADCOM (AVGO): 1.38%
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The post Microsoft, Nvidia, and Apple dominate the S&P 500 like no trio ever appeared first on MacDailyNews.
