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 June 30, 2024, the largest four contributors in the S&P 500 Index returned 56.6% year to date on average. They were 17% of the index and contributed to 52% of the index’s return. As of June 30, 2024, the remainder of the S&P 500 Index returned 4.7% year to date on average. They were 83% of the index and contributed to 48% of the index’s return.
Sources: FactSet and Wells Fargo Investment Institute, as of June 30, 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 NVIDIA Corporation, Microsoft Corporation, Alphabet Inc., and Amazon.com, Inc. as of June 30, 2024.
Key Takeaways
- A handful of stocks have been 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.” At the beginning of the year, those four stocks reflected just over a 15% index weight but contributed over half of the index’s return in the first half.