The stock market’s strong 2023 performance is being attributed to the top-performing mega-cap companies including Apple, Nvidia, Alphabet, Microsoft, and Amazon. These five companies have outperformed the S&P 500 index by 30 percentage points this year and have led the market to rally. However, experts believe that the stock market can continue to perform well even if these companies experience a decline as historical data shows that the S&P 500 has performed well in similar situations. While some investors are concerned about the impact of such a top-heavy market, there is optimism for the future of the stock market as a whole. The AI-software market is predicted to boom to $787 billion by 2026, and Bank of America strategists have named the top 20 stocks expected to lead the market.
The five mega-cap companies that are currently driving the stock market’s strong performance mentioned above are:
1. Apple
2. Nvidia
3. Alphabet
4. Microsoft
5. Amazon
The chief investment strategist at BMO, Brian Belski, is the person who has noted the positive trend in the stock market’s performance despite the narrow market breadth of mega-caps. His research shows that while the top-performing companies have historically experienced a decline, the S&P 500 has generally performed well in the subsequent months. Belski believes that the stock market will continue to perform well in the coming months and years.
