The S&P 500 Is Doing Something That Hasn't Been Seen in Nearly 100 Years. Here Are the 10 Most Important Stocks to Keep an Eye On.

Source The Motley Fool

An interesting psychological aspect of stock market dynamics is that investors often fall into the trap of viewing times of favorable or unfavorable conditions through a binary lens. What I mean by that is it's not uncommon for investors to follow the herd and recency bias when picking and choosing stocks.

Several eye-opening trends are fueling the movements across the S&P 500 (SNPINDEX: ^GSPC) right now. What's going on in the index can be tied to the phenomena above to help shed some light on what stocks investors should keep a close eye on as the market swings from one extreme to another.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

What is going on with the S&P 500?

According to a research report published by investment bank Goldman Sachs, concentration levels within S&P 500 are hovering around their highest levels in 93 years.

According to Goldman, concentration levels of this magnitude have occurred eight times during the past century: 1932, 1939, 1964, 1973, 2000, 2009, 2020, and now. As the data in the report shows, the weight of the top 10 stocks in the S&P 500 is nominally higher than ever.

Stock chart image showing up and down arrows.

Image source: Getty Images.

What stocks should investors keep an eye on?

Goldman's analysis is pretty interesting, but as an investor my guess is you're wondering which stocks are actually having the most influence on the S&P 500's movements right now. As of April 24, the top 10 stocks in the S&P 500 weighted by market cap are:

  1. Apple: $3.1 trillion
  2. Microsoft: $2.9 trillion
  3. Nvidia: $2.6 trillion
  4. Amazon: $1.9 trillion
  5. Alphabet: $1.9 trillion
  6. Meta Platforms: $1.3 trillion
  7. Berkshire Hathaway: $1.1 trillion
  8. Broadcom: $880 billion
  9. Tesla: $826 billion
  10. Eli Lilly: $770 billion

AAPL Total Return Level Chart

AAPL Total Return Level data by YCharts

With the exception of Berkshire and Lilly, each of the stocks cited above is underperforming the S&P 500 so far this year as of this writing.

What does all of this really mean?

There are a couple of different ideas I'd like to unpack given the data and these specific stocks.

First, it's not entirely surprising to see such a precipitous drop in high-growth technology stocks such as the "Magnificent Seven." Thanks to the bullish narratives fueling artificial intelligence (AI), investors have been flocking in droves (herd mentality) to invest in megacap tech stocks during the past couple of years. This has resulted in an unprecedented run for most of big tech. But during times of economic uncertainty (like now), it's not uncommon for investors to take some gains off the table and reallocate funds into consumer defensive stocks, index funds, commodities such as gold, or dividend stocks.

In other words, volatile growth stocks may not be seen as favorably at the moment, and so investors seek out what they think are safer opportunities. What's a little ironic is that the Magnificent Seven stocks have certainly experienced some episodes of volatility during the past two years, so why is now really any different in the grand scheme of things? Mark it down to recency bias.

The second point I'd like to make is that even though many of the growth stocks above are underperforming the market this year, their overall weight in the S&P 500 remains enormous. What this implies is that even though these stocks aren't performing well right now, there are a number of important factors to consider about their dominance.

To start, each of the top 10 stocks above are still being held by a number of influential institutional funds with long-term investment theses and strategies at their core. In addition, the Magnificent Seven, Berkshire, and Lilly all dominate their respective sectors in technology, financial services, and pharmaceuticals. Given these sectors are popular with both hedge funds and retail investors, it's likely that the recent sell-offs will be temporary and these companies will remain favorable in the long run.

At a high level, investing in any of the stocks above provides exposure to high-growth industries such as artificial intelligence (AI), cloud computing, cybersecurity, e-commerce, the red-hot weight-loss market in pharma, and more. In my eyes, each of the top 10 S&P 500 stocks could be seen as a good buy right now depending on your sector preference and risk tolerance.

Should you invest $1,000 in S&P 500 Index right now?

Before you buy stock in S&P 500 Index, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Eli Lilly, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Goldman Sachs Group, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Hurricane Isaias has shut in a quarter of Gulf oil output — can WTI clear $92 before Thursday's EIA report?WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.
Author  Irene Q.
Oct 09, Fri
WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.
placeholder
US September CPI preview: inflation set to hit 3.7% — will the Fed hike in December?US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.
Author  Irene Q.
Oct 10, Sat
US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.
placeholder
Gold posts first weekly gain in three weeks — can $4,200 hold through CPI?Spot gold closed at $4,194.645, up 1.47% — its first weekly gain in three weeks — and COMEX futures settled back above $4,200 at $4,220.30. Here are the drivers, the levels and the scenarios into Wednesday's CPI.
Author  Irene Q.
Oct 10, Sat
Spot gold closed at $4,194.645, up 1.47% — its first weekly gain in three weeks — and COMEX futures settled back above $4,200 at $4,220.30. Here are the drivers, the levels and the scenarios into Wednesday's CPI.
placeholder
Brent swings $105.63 to $102.33 as Gulf risk meets an 'energy ceasefire' — can $100 hold into CPI?Brent spiked to $105.63 in Asian trade on fresh Middle East supply incidents, then reversed to $102.33 after the US announced a Russia-Ukraine 'energy ceasefire' and 300,000+ tonnes of Russian diesel headed to global markets; WTI fell through $90. Here are the drivers, the levels and the scenarios into Wednesday's US CPI.
Author  Irene Q.
Yesterday 05: 47
Brent spiked to $105.63 in Asian trade on fresh Middle East supply incidents, then reversed to $102.33 after the US announced a Russia-Ukraine 'energy ceasefire' and 300,000+ tonnes of Russian diesel headed to global markets; WTI fell through $90. Here are the drivers, the levels and the scenarios into Wednesday's US CPI.
goTop
quote