Despite attempts to expand exposure to Big Tech stocks, Wall Street still relies on these names. From the beginning of 2024 through December 19, the S&P 500 rose approximately 23%. point, that is, more than half of the total revenue. 2023 is the year tech drives the broader market rally, and investors are wondering whether the bull market will expand and let other groups get in on the action. While smaller stocks will break out at some point, Bespoke’s data underscores the ultimate reliance on large-cap tech stocks for the 2024 rally. To be fair, there’s reason to believe that as the Fed cuts rates and Donald Trump wins the presidential election, other stocks may start to outperform. This month, however, those expectations were dashed with cold water. While the tech-heavy Nasdaq continued to climb in December, the blue-chip Dow Jones Industrial Average and S&P 500 fell more than 5% and 2%, respectively. The small-cap Russell 2000 index has fallen nearly 8% in that time. What’s more, the Nasdaq’s outperformance this year further highlights the unique advantages of technology and other growth-focused stocks this year. .IXIC .DJI, .SPX Year-to-date Nasdaq vs. Dow Jones and S&P 500 At times, there are even rumors that the market is concentrating further. As Apple, Alphabet and Tesla showed signs of deterioration earlier this year, the “Fab 4” was considered a replacement for the Mag 7. While all Mag 7 stocks are poised to rise, the strength of annual returns varies widely. Artificial intelligence giant Nvidia is leading the way in 2024, with shares soaring about 175% as of Tuesday morning, the third-biggest gain in the entire S&P 500 index. Its growth this year is less than 14%. Despite the mixed performance, some market participants, such as Catalyst Funds co-founder David Miller, have reason to believe the group can continue to maintain its leading position. “Mag 7 stock is growing significantly in terms of revenue and profitability,” he said earlier this month. “These companies are massive monopolies with strong fundamental drivers. I have no reason to believe the Mag 7 name won’t continue to dominate the S&P in 2025.”
The “Big Seven” stocks will contribute more than half of the S&P 500 Index’s 2024 gains | Real Time Headlines
RELATED ARTICLES