How a few companies dominated the gains

  • The S&P 500 and Nasdaq Composite had banner returns in 2023
  • Few companies commanded the majority of the gains
  • Home Depot and Lowe’s were among the mediocre performers
  • The average stock in the S&P 500 had only a double-digit rise
  • Investors who didn’t invest in Big Tech may have missed out on big returns

As the year comes to a close, the S&P 500 and Nasdaq Composite have seen impressive returns. However, the majority of the gains were concentrated in a few companies, leaving many stocks with only modest increases. Home Depot and Lowe’s were among the mediocre performers, with gains of around 10%. While some stocks in the index enjoyed triple-digit-percentage gains, the average stock struggled to reach double digits. This highlights the importance of investing in Big Tech, as investors who didn’t may have missed out on significant returns.

Public Companies: Home Depot (HD), Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (FB), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA), Lowe’s (LOW), Dow (DOW), Teledyne Technologies (TDY), PG&E (PCG), Morgan Stanley (MS)
Private Companies:
Key People:

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Factuality Level: 7
Justification: The article provides information about the performance of different stocks in the S&P 500 and highlights the dominance of big tech stocks. The information about the gains of specific stocks is based on Dow Jones market data. However, the article does not provide a comprehensive analysis of the factors influencing the stock performance and does not provide a balanced view of the overall market. It also includes some unnecessary background information and digressions.

Noise Level: 3
Justification: The article provides relevant information about the performance of stocks in the S&P 500 and highlights the dominance of big tech stocks. It includes specific data on the gains of certain stocks and mentions the challenges faced by Home Depot. However, the article lacks depth and analysis, and it does not provide actionable insights or explore the consequences of the stock performance on investors or the broader market.

Financial Relevance: Yes
Financial Markets Impacted: The article mentions the performance of stocks in the S&P 500 index, specifically highlighting the gains of big tech stocks and other companies such as Home Depot, Lowe’s, Dow, Teledyne Technologies, PG&E, and Morgan Stanley.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on the performance of stocks in the S&P 500 index and does not mention any extreme events or their impact.

Reported publicly: www.marketwatch.com