Measuring “The Market”

The illustration shown below takes a look at the weight of the top 5 stocks in each of the major indices in the US Market. This visual representation can help investors understand the power of these companies and their influence on market fluctuations.

As of January 1, 2022…

The Total US Market has a combined 3,937 companies with the top 5 stocks holding a weight of 19%.

The Dow Jones index holds 30 US companies with Apple and Microsoft together holding a weight of 9% of the total index.

The NASDAQ, which is heavily weighted towards companies in the technology sector holds 3,454 US/International companies. Apple, Microsoft, Alphabet (Google), Amazon, and Tesla hold a combined weight of 39% of the entire index.

The Standard and Poor’s 500 (S&P 500) tracks 500 large companies listed in the United States. The top 5 stocks listed in the illustration hold a weight of 23% of the entire index of the S&P 500.  
It is helpful to understand the significance the top 5 stocks have on the rest of the market.

Corey Shevlin

Corey Shevlin

Corey serves as an investment adviser representative and handles the investment related administration for The Lynch Financial Group. He currently holds his Series 65, Life and Health Insurance licenses. He attended the University of Delaware and graduated with a Bachelor’s degree in Political Science and Criminal Justice in 2019.