Two bar charts showing the year-to-date average return, weighting in the S&P 500 Index, and percent return contribution of the largest four contributing stocks (based on total return) in the S&P 500 Index and the remainder of the S&P 500 Index. As of March 31, 2024, the largest four contributors in the S&P 500 Index returned 37.7% year to date on average. They were 18% of the index and contributed to 46% of the index’s return. As of March 31, 2024, the remainder of the S&P 500 Index returned 7.7% year to date on average. They were 82% of the index and contributed to 54% of the index’s return.
Sources: FactSet and Wells Fargo Investment Institute, as of March 31, 2024. YTD = year to date. The S&P 500 Index is a market-capitalization-weighted index considered representative of the U.S. stock market. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. Investing in stocks involves risk and their returns and risk levels can vary depending on prevailing market and economic conditions. The largest four contributors to S&P 500 Index performance are Microsoft Corporation, NVIDIA Corporation, Amazon.com, Inc., and Meta Platforms Inc as of March 31, 2024.
Key Takeaways
- Market breadth broadened during the first quarter, but a handful of stocks are still the major contributors to the index’s positive performance year to date.
- However, leadership has shifted from seven stocks, dubbed the “Magnificent 7” that dominated in 2023, to four stocks, commonly referred to as the “Fab 4.” Those four stocks reflect a less than 20% index weight but contributed to nearly half of the index’s return in the first quarter.