One Chart Shows How the "Magnificent 7" Have Dominated the Stock Market in 2023
The S&P 500 has never been this top heavy.The "Magnificent 7" tech stocks — Apple , Alphabet , Microsoft , Amazon , Meta , Tesla , and Nvidia — make up 29% of the S&P 500's market cap.And a chart in Goldman Sach's 2024 US Equity Outlook shows that's the largest portion of S&P 500 market cap ever dominated by just seven stocks.That perspective helps explain a second chart from Goldman which shows the "Magnificent 7" have gained 71% while the other 493 stocks have added just 6%. Given the benchmark's market cap distribution which allows larger stocks to contribute more to the index's movements, the S&P 500 has added about 19% this year.Research from Goldman Sachs shows the S&P 500 has never been this top heavy, which is leading to gains in seven stocks driving the major average higher."The 7 stocks have faster expected sales growth, higher margins, a greater re-investment ratio, and stronger balance sheets than the other 493 stocks and trade at a re