From Nasdaq:

The performance of the S&P 500 is being skewed by just five companies, accounting for 6.5 percentage points of the index’s 7.0% gain this year. Nvidia, Meta Platforms, Microsoft, Amazon, and Eli Lilly make up 19.7% of the index and have driven the market up significantly.

These leading companies have seen explosive growth, but the market may struggle to maintain these gains in the long term. Valuations are expanding rapidly, and while earnings growth is strong, there is a risk of a sell-off as stock prices become stretched.

Investors who did not own these top companies may have seen varied returns compared to the overall market. The tech sector, particularly the top-performing companies outside of tech, has been driving market gains. Diversification through ETFs can help mitigate this risk and achieve long-term wealth accumulation.



Read more at Nasdaq: Meet the 5 Stocks That Have Contributed Almost All of the S&P 500’s 2024 Gains