Stock Market Analysis

Stock Market Analysis

Super Micro and Nvidia lead the S&P 500 this year. These stocks follow.

This has been a very good year for the stock market as a whole, although the performance of broad U.S. indexes also underscores how important the weighting of an index can be.

The S&P 500 has returned 15.8% this year through Thursday, with dividends reinvested. It is weighted by market capitalization, as you will see below.

The build-out of technical infrastructure to support efforts to develop products and services using generative artificial intelligence has been a dominant theme this year. The market-cap weighting benefits investors in index funds that track the U.S. large-cap index and enjoy low fees. The $542 billion SPDR S&P 500 ETF Trust is the best-known example.

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