As Friday's market action conclusively demonstrated, the market has been split into the magnificent world of the Magnificent 7, and the rather dreary existence of the 493 remaining S&P500 members. Case in point, after modestly beating earnings estimates, Facebook Meta MetAI enjoyed a 20%, or $197 billion, surge in its market cap in one single day, which as shown in the table below was the single biggest market cap increase in history (and follows just two years after META also suffered the single biggest value destruction in market history when a quarter trillion in value vaporized). But what is even more notable is that all of the top 10 one-day market cap increases belong to Mag 7 companies.
Furthermore, as the next chart shows, while the Mag 7 are already up more than 9% YTD, the rest of the market is barely 2% higher in 2024, even as the S&P has been rising for 13 of the past 14 weeks, an unprecedented stretch.
