The Rest Of The S&P 500 Is Waking Up

The S&P 500 remains highly concentrated, with much of the index’s recent performance driven by its 10 largest companies. Because the index is market-cap weighted, the largest companies have an outsized influence on overall returns. However, market participation has recently begun to broaden. As of June 2026, approximately 46% of S&P 500 companies had outperformed the index, up significantly from the 27%–31% range seen over the previous three years. This improvement suggests that investors are becoming more optimistic about companies outside the largest mega-cap names, particularly those positioned to benefit from continued advances in AI and technology.