Nvidia and Apple’s combined weighting in the S&P 500 hits a record, surpassing dot-com era concentration levels.
Nvidia and Apple now account for more than 15% of the S&P 500, the highest concentration for two stocks in the index’s history. This surpasses the dot-com bubble peak, when Microsoft and General Electric dominated.
The surge reflects investor enthusiasm for AI, with Nvidia benefiting from strong demand for its chips and Apple betting on new AI initiatives under incoming CEO John Ternus. However, a mid-May sell-off in tech stocks, triggered by higher-than-expected inflation and rising Treasury yields, briefly disrupted momentum.
The 10-year Treasury yield climbed to a 12-month high of 4.61%, compressing valuations for high-growth tech stocks as rate-cut expectations faded.