With the U.S. market falling -10% peak-to-trough over the last month, entering a technical correction, many of the mega cap companies that drove performance during past years have dragged the overall market lower.
In this week’s Market Note, we take a look at market movements year-to-date to put the recent drawdown in perspective. Here, we see that the performance of the largest S&P 500 stocks—commonly referred to as the Magnificent 7—have all detracted from total index performance, with Meta being the exception. In a new environment of higher index concentration, the behavior of the largest companies will continue to contribute substantially to total index performance, both to the upside and to the downside.
The Verus Market Note provides market commentary along with relevant charts and graphs. Each week, we highlight a key story from the finance world that we believe will pique your interest. While these insights are meant to inform and enrich your understanding of the current market landscape, they do not constitute investment advice or a recommendation to buy, sell or hold a particular security or pursue a particular trading strategy.
