Markets Analysis

The Magnificent Seven's Grip on Market Returns

How tech giants dominate S&P 500 performance across recent years

Interactive Returns Calculator

Select a year and choose which of the top 7 companies by market capitalization to exclude from the S&P 500 return calculation. See how market concentration has evolved from 2022 to 2025.

Exclude from calculation:
Full S&P 500 Return
+27.5%
Including all 500 companies
Adjusted Return
+27.5%
0 companies excluded
Impact of Exclusions
0.0%
Difference in returns
Sources: IVV ETF (iShares Core S&P 500), Yahoo Finance, CompaniesMarketCap.com (December 2025)

Top 7 Companies by Market Capitalization

The composition and returns of the largest companies at year-end for each period.

Historical Perspective: Market Concentration

The Magnificent Seven's Dominance

The seven largest technology companies—Apple, Microsoft, Nvidia, Alphabet (Google), Amazon, Meta, and Tesla—collectively account for approximately 35% of the S&P 500's total market capitalization as of late 2024. This concentration level is unprecedented in modern market history.

Year S&P 500 Return Mag 7 Return S&P 493 Return Concentration Effect
2025 YTD +17.5% +45.2% +12.5% +5.0 pts from top 7
2024 +23.3% +65.8% +12.1% +11.2 pts from top 7
2023 +24.2% +75.7% +11.8% +12.4 pts from top 7
2022 -18.1% -40.2% -11.4% -6.7 pts from top 7
Sources: Bloomberg, Goldman Sachs Research, S&P Global Market Intelligence

Key Insights

2022: The Magnificent Seven amplified the bear market, falling 40% while the remaining 493 stocks declined 11%. Tech concentration worked against investors.

2023-2024: A dramatic reversal. The top 7 stocks gained 76% and 66% respectively, contributing over half of the index's total returns. Without these companies, the S&P 500's gains would have been modest.

2025 YTD: Based on IVV ETF tracking, the S&P 500 is up 17.5% year-to-date as of December 5th, with the largest stocks up approximately 45% while the broader market rises more modestly, demonstrating continued market concentration around AI and technology leaders.

S&P 500 Price Levels (IVV ETF)

Period Opening Price Current/Closing Price Change (Points) Change (%)
2025 YTD $585.00 $687.50 +$102.50 +17.5%
2024 4,770 5,881 +1,111 +23.3%
2023 3,840 4,770 +930 +24.2%
2022 4,766 3,840 -926 -19.4%
Note: Prices reflect IVV ETF (iShares Core S&P 500 ETF). 2025 data as of December 5, 2025