Megacap technology stocks, referred to as the "Magnificent Seven," have played a dominant role in the gains of the S&P 500 index, outperforming other components. As of the year-end close, the S&P 500 has seen a 23.8% increase for the year. The Magnificent Seven, consisting of Apple Inc. (AAPL), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), Nvidia Corp. (NVDA), Alphabet Inc. (GOOG, GOOGL), Tesla Inc. (TSLA), and Meta Platforms Inc. (META), have significantly contributed to this performance.
By weighing the Magnificent Seven based on their market capitalizations at the end of the previous year, it is noted that this group contributed to 58% of the S&P 500's total return of roughly 26% for the year. This contribution has slightly decreased from an earlier figure of 67% at the end of November, indicating a slight shift in their relative impact on the index's performance. (chart from Marketwatch) ∞ALPHA
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