S&P 500 turns positive for 2020, but most stocks are missing the party

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The benchmark S&P 500 U.S. stock index is now positive for the year, yet most of its components have sat out the rally.

FILE PHOTO: Traders wearing masks work, on the first day of in person trading since the closure during the outbreak of the coronavirus disease on the floor at the New York Stock Exchange in New York, U.S., May 26, 2020. REUTERS/Brendan McDermid/File PhotoAfter a steep, months-long climb, the index is now up roughly 0.7per cent on the year and stands at its highest level since Feb. 21.Yet for every stock that has advanced on the S&P 500 this year, 1.

The five most valuable S&P 500 companies - Apple Inc, Microsoft Corp, Amazon.com Inc, Alphabet Inc and Facebook Inc - account for some 23per cent of the index's market capitalization, the highest level on record, according to Goldman Sachs. Given their relatively strong balance sheets and steadier revenue streams, many investors believe such companies are better positioned to withstand the economic pressures resulting from the novel coronavirus pandemic.

 

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