The S&P 500 is the best index in the world.

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S&P 500 companies hold $7.1 trillion in assets, and account for close to 80% of available market capitalization on U.S. stock exchanges 📈⁠
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The index serves as a barometer for the U.S. stock market, covering the largest public U.S. companies by market capitalization. Often, it reflects investor sentiment and is considered an indicator for U.S. economic health.⁠
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As the S&P 500 enters a bull market after the longest downturn in decades, this graphic shows the entire makeup of one of the world’s largest markets.⁠

Big tech companies are experiencing of 57%, outpacing the broader market of 4% in 2023 📈⁠
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However, projections suggest big tech's recent momentum may slow until the EPS gap with the S&P 500 narrows significantly by 2026.⁠
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Here, we compare the earnings growth forecasts for the S&P 500 and tech giants like Microsoft and Nvidia, based on data from Goldman Sachs.⁠

Largest Companies in the World.💰

Let's take a captivating journey through the corporate world as we uncover the 50 biggest companies that stand as pillars of modern global commerce!

From tech giants to energy magnates, these industry titans shape economies and redefine business landscapes across continents.

With unparalleled market capitalizations and far-reaching influence, these companies are at the forefront of innovation, growth, and strategic leadership.

Diverse sectors like technology, finance, healthcare, and energy are represented, showcasing the dynamic tapestry of today's interconnected world.

Their impact extends beyond profits, as these companies drive employment, inspire entrepreneurship, and contribute to societies in profound ways.

What are pieces that make up the CPI pie?

Year-to-date, the S&P 500 has returned +10%. If you exclude the 7 tech stocks with the biggest gains this year, the index has only returned +1%. The S&P 500 index has had substantial exposure to the AI hype and the growth of only a handful of stocks is holding up the entire market.

The S&P 500 is the best index in the world. Here’s why 👇
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The S&P 500 is an index that tracks 503 of the largest companies in the U.S. Each of those stocks fall into certain categories known as sectors.
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Before I move on, I recently launched a YouTube channel where I'll be diving even deeper into the world of finance and investing. My latest video talks about the top 10 most popular ETFs, some of which track the S&P 500.

The US debt has been steadily increasing over the years due to persistent budget deficits. The government spends more money than it collects in revenues, leading to the need to borrow.

Concerns arise regarding the long-term implications of high debt levels, including increased interest payments, reduced fiscal flexibility, and potential risks to economic stability.

Addressing the issue requires a comprehensive approach that balances reducing the debt burden with funding essential government programs, but it remains a complex and politically challenging task.

The graphic above breaks down those sectors and gives 3 examples of companies that fall under each one. Here is the full list:

Technology - Apple, Microsoft, Nvidia Healthcare - Johnson & Johnson, United Healthcare, Abbott Consumer Discretionary - Amazon, Home Depot, McDonald’s Financials - Bank of America, JPMorgan Chase, Mastercard Communication - Meta (Facebook), Verizon, Alphabet (Google) Industrials - 3M, John Deere, Caterpillar Consumer Staples - Procter & Gamble, Coca-Cola, Walmart Real Estate - Simon Properties, Realty Income, American Tower Energy - Chevron, ExxonMobil, Shell Materials - BHP Group, RioTinto, PPG Industries Utilities - Nextera Energy, Con Edison, The Southern Company
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The total market cap of the companies in a sector determine its weighting in the index. The more weight, the more influence that sector’s performance has on the index.