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 companies—Apple (AAPL, Financial), Nvidia (NVDA, Financial), Microsoft (MSFT, Financial), Amazon (AMZN, Financial), and Alphabet (GOOGL, Financial)—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 (GM, Financial), Exxon (XOM, Financial), IBM (IBM, Financial), 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.
