This year marked another strong performance for the US stock market, with over 96 stocks in the S&P 500 experiencing double-digit declines. Amidst this trend, two key points to consider are that past performance may not be indicative of future results and the weight of large companies can help stabilize the index.
The S&P 500 has risen more than 20% for the second consecutive year, driven by the performance of larger corporations. Notably, some smaller companies in the index suffered significant losses. Despite this, the overall trend suggests that time can smooth out volatility, and the market’s weight is influenced by its largest contributors.
To fully grasp the implications of this year’s performance, investors need to consider these key factors.
Source: https://www.marketwatch.com/story/walgreens-and-intel-lead-list-of-stocks-in-the-s-p-500-that-fell-hardest-2024-94a95280