Global equity markets are currently characterised by historically high concentration risk, with a small group of mega-capitalisation companies, primarily USA technology leaders such as ‘The Magnificent Seven’ – Alphabet, Amazon Apple, Meta, Microsoft, Nvidia and Tesla, accounting for a disproportionate share of index performance. Recent data indicates that the seven stocks combined hold a record concentration in the S&P 500, exceeding 30% in late 2025 and up to 40% in early 2026. By late 2025, the group’s collective market cap exceeded $19 trillion, and by early 2026, it passed $20 trillion, marking an unprecedented level of market concentration risk. This concentration means that ‘The Magnificent Seven’ stocks now represent more than one-third of the entire index’s market value, meaning the performance of the S&P 500 is heavily driven by this small group.
