The top five companies in the S&P 500 (SP500) had combined weight at the end of 2024 that exceeded levels last seen in 1964, according Bianco Research. Together as of December 31, 2024, the five companiesApple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL)made up 28.8% of the index.
Often known as the “Magnificent 7,” this landmark highlights the disproportionate influence of mega-cap technology corporations on Wall Street’s present bull market. The cumulative weight of the top five names in 1964 arrived at 27.6% with AT&T (T), General Motors (NYSE:GM), Exxon (NYSE:XOM), IBM (NYSE:IBM), and Texaco. The concentration dropped; by 1978, the top five companies accounted for just 21.2% of the S&P 500. Investors and experts will closely monitor whether today’s high marks a similar trend or the ongoing dominnation of tech companies in the index.
The S&P 500 dropped 0.24% mid-week trade on Wednesday.
This article first appeared on GuruFocus.