The S&P 500 is more dependent on three stocks than ever before. Nvidia, Apple and Microsoft now together account for more than 21% of the S&P 500, according to data from Creative Planning.
Apple recently introduced the iPhone Duo, a foldable smartphone. Nvidia, Apple and Microsoft are now far more important to the index than the biggest companies were in previous decades. Nvidia has been one of the biggest drivers of the recent rise. Apple has also been trading close to a record high. The larger display is designed for activities such as watching movies, playing games, working and multitasking. Wall Street analysts have been increasing their earnings estimates for Microsoft for this year and next.
The only comparable example came in the mid-1980s, when IBM, AT&T and ExxonMobil together accounted for 13.4% of the S&P 500, according to the data cited by Yahoo Finance. The company, which dominates the market for AI chips , recently announced a $150 billion stock buyback plan. The $150 billion buyback authorization is the largest single increase in a share repurchase authorization in history, Yahoo Finance reported. The new plan takes Nvidia’s total authorized buybacks to $235 billion. Its stock has risen sharply since the company’s product event in mid-September, helping increase Apple’s influence on the S&P 500. The device has a 5.4-inch front display that opens like a book into a 7.6-inch screen, according to Yahoo Finance. Apple also introduced its iPhone 18 lineup and updated AirPods at the same product event, Yahoo Finance reported.
Analysts expect continued demand for artificial intelligence to support strong sales from Microsoft’s Azure cloud business, according to Yahoo Finance.
