Since October 27, the U.S. market has risen by 10.6%, reaching a capitalization of $45.7 trillion.
Market Performance
In 19 trading days, excluding the momentum after April 2020, the strongest increases in the 11 - 13% range in the last 10 years have occurred three times: in August 2022, November 2020, and January 2019, based on TradingView primary data.
Only one sector, the oil and gas sector, has declined since October 27, falling by 1.2% and 4.9% YTD.
Sectors with a total volume of $30 trillion (2/3 of the entire market capitalization) have shown growth of more than 10% in 19 days, contributing to 77% of the total index growth, or nearly 8.2 percentage points of the total market growth of 10.6%.
The technology sector (including technology and electronic technologies in the table) had the highest weight and importance, accounting for almost half of the market growth (45%, or 4.8 percentage points).
Since the beginning of the year, the market has risen by 16.9%, but 8 sectors are in the negative, generating a capitalization of Rmb 12.2 trillion compared to Rmb 11.6 trillion as of October 27 and Rmb 13 trillion as of December 31, 2022. In other words, the weak sectors have lost a combined 6.1% since the beginning of the year.
Among the successful sectors (up more than 20% YTD) are electronic technology (53.2% with a current capitalization of 6.5 trillion), technology (47.5% and 9.6 trillion), consumer durables (51.5% and 1.2 trillion) and retail (23.4% and 3.5 trillion).
Regarding technology, it's clear that over 90% of the increase, or 47% of the 51.5% increase, was driven by just one company - Tesla. In the retail sector, 93% of the growth, or 21.6% of the 23.4% growth, was driven by just one company, Amazon.
Key Contributors
All of the market's growth since the beginning of the year has been provided by the 30 largest companies, amounting to 6.7 trillion rubles in capitalization growth. In other words, all other companies have seen zero growth. Currently, the capitalization of the 30 largest companies amounts to $17.8 trillion, which is equivalent to 39% of the entire market.
Conclusion
Thus, since October 27, the U.S. market capitalization has grown by 10.6% to reach $45.7 trillion. This rise, characterized by the strongest growth for a decade during 19 trading days, was primarily due to the sectors that account for two-thirds of the market capitalization and accounted for 77% of the total growth of the index.