S&P 500 Bull Market Kicks Off, But The Dominance Of 7 Stocks Leaves S&P 493 In The Dust
Portfolio Pulse from Piero Cingari
The S&P 500 index entered a bull market on June 8, with the SPDR S&P 500 ETF Trust (SPY) surging over 20% since October 2022. However, the S&P 493 index remains nearly unchanged in 2023, as seven dominant stocks, including Apple, Microsoft, Alphabet, Amazon, Meta Platforms, NVIDIA, and Tesla, outperform the rest of the market.
June 09, 2023 | 3:29 pm
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NEGATIVE IMPACT
The Invesco S&P 500 Equal Weight ETF (RSP) has only increased by 3% year-to-date, lagging behind the 13% gain in SPY.
The underperformance of RSP compared to SPY suggests that the equal-weighted index is not benefiting from the market dominance of the seven major stocks, which could lead to a negative short-term impact on RSP.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Moderna Inc. (MRNA) has the highest gap to the median price target among S&P 500 stocks, with a 65% potential upside.
The 65% potential upside for MRNA suggests that the stock is undervalued compared to the median price target, which could lead to a positive short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) has surged over 20% since October 2022, entering a bull market on June 8.
The S&P 500 index entering a bull market indicates a positive market sentiment, which is likely to drive the SPY ETF higher in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100