Chart of the Day - Tuesday, November 7, 2023

Today's Chart of the Day was shared by Todd Sohn (@Todd_Sohn). Mega-Caps have gotten even more Mega lately. One way to visualize this is by looking at the Equal-Weight S&P 500 vs. the S&P 500 (red line). It closed at a three-year low today despite the recent rebound in the broader market. Todd points out that the five largest stocks ($AAPL, $MSFT, $AMZN, $NVDA, and $GOOGL) have never carried so much weight in the S&P 500, representing 25% of the index. In other words, the top 1% of the S&P 500 is responsible for a quarter of its performance. This is a tailwind for the S&P 500 as long as the top five outperform, but the index has never been more dependent on its star players.