2024-07-09 06:50:00 ET
Mega-cap growth stocks continue to dominate the broader market and contribute the bulk of gains in the major indexes like the S&P 500 and Nasdaq Composite . But the sheer value of some of the largest companies might surprise you.
The "Magnificent Seven" is a term coined by Bank of America analyst Michael Hartnett to describe seven industry-leading tech-focused companies: Microsoft (NASDAQ: MSFT) , Apple (NASDAQ: AAPL) , Nvidia (NASDAQ: NVDA) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Amazon (NASDAQ: AMZN) , Meta Platforms (NASDAQ: META) , and Tesla (NASDAQ: TSLA) .
These seven companies are now so valuable that they make up a combined 35.5% of the S&P 500. Here's what these changing market dynamics mean for the stock market and how to position your portfolio in a way that matches your risk tolerance and helps you achieve your investment objectives.
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35% of the S&P 500 Is Concentrated in the "Magnificent Seven." Here's What That Means for Your Portfolio.