NASDAQ 100 Driven To New Highs By Trillion-Dollar Stocks Only

The NASDAQ 100 hit a new all-time high recently. The narrative has been that the rally has widened to include a majority of the stocks. However, this appears to be false when looking at the data.

While the NASDAQ 100 has hit a new all-time high, the equal weight NASDAQ 100 has not hit a new all-time high recently. This means that the trillion-Dollar companies like Nvidia, Microsoft, Meta Platforms, Amazon.com, Apple and Alphabet are driving the rally to new all-time highs.

If you remove the gains from those stocks alone, the NASDAQ 100 would be negative on the year.

The NASDAQ 100 is up 11.78% on the year as the index makes the bigger companies have a large impact on the index. The equal weight NASDAQ 100 is only up 4.48% on the year. This index makes all 100 companies within the index equal.

Investors need to be aware of the risks that the mega caps have. While they are running higher it is wonderful, however, if they collapse, the markets collapse. In addition, the underperformance of everything else signals trouble for the economy.