By Lewis Krauskopf
NEW YORK (Reuters) – A rally that has propelled U.S. equities to record highs increasingly rests on red-hot chipmaker Nvidia and a handful of other giant stocks, reviving concerns that the market’s performance has become tied to a cluster of companies.
About 60% of the S&P 500’s total return of more than 12% for the year has been driven by five companies whose shares have some of the heaviest weightings in the index: Nvidia, Microsoft, Meta Platforms, Alphabet and Amazon.com, data from S&P Dow Jones Indices showed.
Nvidia – which on Wednesday became the world’s second-most valuable company following a 147% run this year – has alone accounted for about a third of the index’s gain.
As the companies’ share prices have rallied, their weightings in the S&P 500 have grown, giving them more sway over the broader index. The top four stocks – Microsoft, Apple, Nvidia…
