Investors are in celebration mode, too. The S&P 500 and Dow both hit all-time highs on Monday, as Wall Street brushed off lingering concerns about a slowdown in economic growth, higher inflation and heavy debt loads in China’s large real estate sector.
But the growing $1 trillion club isn’t necessarily a good thing for markets over the long run.
Breaking it down: Five companies in the S&P 500 — Apple, Microsoft, Google parent Alphabet, Amazon and Tesla — are now worth a collective $9.3 trillion. That’s almost 23% of the benchmark US stock index’s total value. Add in Facebook, which is worth almost $927 billion, and the figure rises to 25%.
That means that increasingly, a handful of firms have outsize influence over the index — and therefore…