The U.S. market has weakened. The capitalization of all publicly traded U.S. companies is valued at $41.4 trillion, which is up 5.7% from the last trading day in 2022. At its peak in July 2023, U.S. market growth reached nearly 19% year-to-date.
Company Analysis
Currently, there are 1,693 U.S. companies with a capitalization above $1 billion trading in the U.S., accounting for 98.7% of the total market capitalization. There are 503 companies with a capitalization above $10 billion, representing 88.4% of the market share, and 139 companies with a capitalization above $50 billion, making up 68.2% of the market share.
The $100 billion cutoff has been surpassed by 72 companies, collectively accounting for 56.8% of the market capitalization. Currently, only 5 companies have a valuation of over $1 trillion, constituting a 21.6% share.
Since the beginning of the year, only 309 companies have gained more than $1 billion in capitalization, generating a total of $5.6 trillion in positive contributions with a combined capitalization of $22.8 trillion.
A decrease of more than $1 billion was observed in 498 companies, resulting in a negative contribution of $3.17 trillion, with a total capitalization of $13.2 trillion. There are more companies in a negative trend, but with smaller capitalization.
Notable Contributors
What's particularly interesting is that the growth of the entire market can be attributed to only four companies, which contributed nearly 6 percentage points. Microsoft has seen an increase of $644 billion since the beginning of the year, Nvidia gained $633 billion, Apple grew by $593 billion, and Meta Platforms added $447 billion. The rest of the market has remained relatively stagnant.
The top 20 most successful companies have contributed a positive $4.3 trillion since the beginning of 2023. If you exclude them from the calculation, the rest of the market is down by 7%.
Excluding the limited number of success stories, the market has already fallen to February 2021 levels. Locally, the market is oversold, and globally it continues to decline as the crisis is just beginning.
Conclusion
In conclusion, the US market exhibited mixed dynamics in 2023, characterized by both growth and stagnation. Although the overall market capitalization has increased by 5.7% since the beginning of the year, this growth was primarily driven by a handful of technology giants, namely Microsoft, Nvidia, Apple, and Meta Platforms. The majority of companies listed on the market have experienced either minimal or negative capitalization growth.