The ten largest US market capitalizations account for 41 % of the S&P 500 according to Citadel Securities data, an unprecedented level that far exceeds the peaks of 1973 (22 %) and 2000 (27 %). Nvidia alone represents 8 % of the index, followed by Apple (7 %), Microsoft and Alphabet (6 % each), then Amazon (4 %). The 402 smallest companies represent only 23 cents per dollar invested, less than the four largest combined. The top three companies (Nvidia, Apple and Microsoft) concentrate 21 % of the index, a record according to Benzinga. This extreme concentration makes the index vulnerable to the performance of a handful of tech companies, particularly Nvidia.
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