In a recent three-month period, the seven largest S&P 500 stocks soared 32.8 per cent, but the seven smallest stocks fell 35 per cent. Photograph: Lionel Bonaventure / AFP via Getty ImagesNvidia and a few other mega-cap tech stocks have skyrocketed, driving indices higher, but most stocks have stagnated.
Stocktake has commented on this phenomenon multiple times in recent weeks but it bears repeating because, as Bespoke Investment notes, the performance disparity between the mega-caps and everyone else “can’t be overstated”. In a recent three-month period, the seven largest S&P 500 stocks soared 32.8 per cent, but the seven smallest stocks fell 35 per cent. The 50 biggest stocks gained 11.8 per cent, but the smallest 50 stocks were down 11.4 per cent.