{"id":3362,"date":"2024-07-01T19:26:25","date_gmt":"2024-07-01T19:26:25","guid":{"rendered":"https:\/\/maxrezmedia.com\/website_131ddb8a\/?p=3362"},"modified":"2024-08-20T19:26:48","modified_gmt":"2024-08-20T19:26:48","slug":"sp-market-concentration-hits-a-new-all-time-high","status":"publish","type":"post","link":"https:\/\/maxrezmedia.com\/website_131ddb8a\/sp-market-concentration-hits-a-new-all-time-high\/","title":{"rendered":"S&#038;P Market Concentration Hits a New All-Time High"},"content":{"rendered":"<p style=\"text-align: right;\">Bryan Taylor, Chief Economist, Finaeon<\/p>\n<p style=\"font-weight: 400;\">\u00a0Standard and Poor\u2019s has just released data on the market cap and share of the S&amp;P 500 that the Top 10 stocks make up. The data show that once again the US stock market has become the most concentrated in the past 150 years.\u00a0\u00a0As of June 30, 2024, the Top 10 Stocks had a market cap of $17.07 trillion which represented 35.77% of the S&amp;P 500.\u00a0\u00a0One month ago, the Top 10 represented 34.07% of the S&amp;P 500.\u00a0\u00a0Until the past two months, the Top 10 stocks never represented more than one-third of the total market cap, much less 35%.\u00a0\u00a0The Top 5 stocks (Microsoft, Apple, Nvidia, Google and Amazon) had a total market cap of $13.13 trillion which represented 27.46% of the S&amp;P 500.\u00a0\u00a0The Top 5 represented less than 10% of the S&amp;P 500 in 2014 and until February 2024, it had never been more than 25% of the Top 500 stocks in the past 150 years.<\/p>\n<p style=\"font-weight: 400;\">The increase in the concentration was driven by Nvidia, which rose in price by 12.69% in June.\u00a0In addition to Nvidia, Apple rose 9.56%, Amazon rose 9.53% Meta rose 8.01% and Microsoft rose 7.67% while the S&amp;P 500 rose by 3.49%. Berkshire Hathaway was the only one of the Top 10 to drop in price last month. Microsoft, Nvidia and Apple all have market caps of over $3 trillion making each of them larger than the entire S&amp;P 400 Midcap.\u00a0\u00a0At one point in June, Nvidia was the largest corporation by market capitalization in the world, but the recent decline in the price of Nvidia allowed Microsoft to take back the top spot. Remarkably, Nvidia was under $1 trillion in market cap in May of 2023 and just reached $2 trillion in February of 2024.\u00a0\u00a0<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3363 aligncenter\" src=\"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-content\/uploads\/2024\/08\/download-5-11.png\" alt=\"\" width=\"975\" height=\"456\" srcset=\"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-content\/uploads\/2024\/08\/download-5-11.png 975w, https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-content\/uploads\/2024\/08\/download-5-11-300x140.png 300w, https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-content\/uploads\/2024\/08\/download-5-11-768x359.png 768w\" sizes=\"auto, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" \/><span style=\"font-size: 14pt; color: #04aa9a;\"><b><strong>Figure 1. Top 10 Companies as a Percentage of the S&amp;P 500, 1875 to 2024<\/strong><\/b><\/span><\/p>\n<p style=\"font-weight: 400;\">Can each of the top three stocks remain larger than the Midcap 400?\u00a0\u00a0Is the increased concentration a warning that the market is hitting a major top? An analysis of the past says no.\u00a0\u00a0The percentage of the Top 10 relative to the top 500 hit 32% in both 1955 and in 1963, and the market continued to rally until 1973.\u00a0\u00a0What is more likely is that the bull market will now spread to the rest of the market.\u00a0\u00a0That is what happened in the 1960s, and we hope that will happen in the 2020s.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bryan Taylor, Chief Economist, Finaeon \u00a0Standard and Poor\u2019s has just released data on the market cap and share of the S&amp;P 500 that the&#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,161],"tags":[],"class_list":["post-3362","post","type-post","status-publish","format-standard","hentry","category-insights","category-july-2024"],"acf":[],"_links":{"self":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts\/3362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/comments?post=3362"}],"version-history":[{"count":2,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts\/3362\/revisions"}],"predecessor-version":[{"id":3365,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts\/3362\/revisions\/3365"}],"wp:attachment":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/media?parent=3362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/categories?post=3362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/tags?post=3362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}