Equity Market Concentration - Market Capitalization of 10 Largest Companies as Share of S&P 500 Total

What once mirrored the market now drives it. Ten mega caps account for 39% of the S&P 500 and 35% of its earnings, lifting valuations and magnifying volatility. The rally feels smooth. The downside does not.

Image: Goldman Sachs Global Investment Research

Equity Market Concentration - Market Capitalization of 10 Largest Companies as Share of S&P 500 Total