Apple Tops $2 Trillion Market Cap | On This Day

Market Performance - The S&P tech sector is on track for its 11th year of outperformance in the past 12, relative to the rest of the S&P 500 [1] - In 2020, Apple's market value almost matched the entire Russell 2000 small cap stocks index [3] - Apple's market capitalization first surpassed $2 trillion on August 19th, 2020, taking 38 years to reach the first $1 trillion and only two years for the next $1 trillion [2] - Currently, Apple and Microsoft each have a valuation of $3 trillion, while Nvidia is north of $4 trillion [4] Market Concentration - Five tech stocks account for more than half (300 points out of 500) of the S&P's gains this year [5] - In 2020, six stocks were responsible for most of the broader market gains, up 40% as a group, while the S&P was down 4% when excluding those six stocks [3][4] - The extreme market concentration rivals the 1998 dot-com bubble [5] Profit Growth - The five tech stocks, along with a few others, make up the lion's share of profit growth for the market as a whole [5]