According to a recent report, Apple, Microsoft, and three other tech companies now make up 25% of the S&P 500’s market capitalization, with a combined worth of nearly $9 trillion. The other companies are Alphabet, Amazon, and Nvidia. This development highlights the growing influence of tech companies on the US economy and the stock market.
The S&P 500 is a benchmark index that represents a broad cross-section of large US companies. It is weighted by market capitalization, which is why the big five tech companies have such a dramatic influence on the index. The index’s entire market value is about $35 trillion.
The report also noted that this year’s tech rally has lifted Apple, Microsoft, Alphabet, and Amazon at least 30%, and doubled the value of Nvidia and Meta. That’s given a 26% boost to the Nasdaq 100, almost three times the S&P 500’s gain.
The robust performance of these tech giants proves that despite being tied to economically sensitive areas such as advertising and IT spending, the tech industry’s biggest players have ridden out recent economic uncertainty in surprisingly good shape, backed significantly by AI, the launch of a revolutionary version of OpenAI’s ChatGPT, and drastic job cuts to remain resilient.
Sources: Moneycontrol
