The S&P 500 Index is increasingly reliant on a small number of stocks for its performance. The top 10 stocks now constitute 37% of the index and 27% of its earnings. This concentration is the highest since 1929, with only 30 stocks making up over half of the index, according to Morgan Stanley. In the first half of 2024, the top 10 largest stocks contributed to approximately 77% of the index's total return, a level only surpassed in 2007. This extreme market concentration highlights the second highest ever reading of such reliance.
The top 10 largest stocks in the S&P 500 contributed to ~77% of the index's total return in the first half of 2024. The only time itโs been higherโฆ 2007. https://t.co/uRteNdO5yj
The top 10 biggest stocks in the S&P 500 contributed to 77% of the index's total return in H1. That is the second highest ever reading of that number. Only time its been higher was in (gulp) 2007... via @Todd_Sohn https://t.co/Pt796CyRhb
The S&P 500โs reliance on a few winning stocks is getting worse https://t.co/b0X9IUHdpP
In the S&P 500 the degree of stock concentration is extreme; the top 10 companies have the highest weight in the index since 1929. Chart shows periods of extreme market concentration during the past century. Source GS https://t.co/fQJG0rYlec
In the S&P 500 the degree of stock concentration is extreme; the top 10 companies have the highest weight in the index since 1929 https://t.co/TeoiiGBAAY
The top 10 companies have the highest weight in the index since 1929.
S&P 500 Index: only 30 stocks make up over the half of the index, chart @MorganStanley https://t.co/0Q0mEDVaPm
S&P 500 Index: relatively fewer stocks have contributed to recent gains, chart @MorganStanley https://t.co/3TLwzx29iB
SPX top 10 stocks: 37% of the index, 27% of earnings https://t.co/gGKlSqxGgC