Markets

The Relationship Between Stock Exchanges and Indices [Chart]

Published

8 years ago

March 31, 2016

Jeff Desjardins

The Relationship Between Stock Exchanges and Indices [Chart]

Plotting almost 5,000 U.S. Large Caps on the NYSE, NASDAQ, S&P 500, and DJIA

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

The NYSE and NASDAQ are the two largest stock exchanges in the world by market capitalization. However, what is their relation to major indices such as the S&P 500, S&P 100, and the Dow Jones Industrial Average?

Today’s chart breaks down the composition of the 4,500+ large cap stocks that are traded on the NYSE and NASDAQ, showing how the indices are currently derived. (For another refresher, check out our post on the difference between the Dow, S&P 500, and the NASDAQ.)

The S&P 500, founded in 1923, is considered one of the best overall indicators of the U.S. stock market. Composed of 118 companies from the NASDAQ and 382 companies from the NYSE, it represents the 500 companies with the highest market capitalizations that have common stock listed on either exchange. The S&P 500 is a capitalization-weighted index with components weighted based on the total market value of their outstanding shares. The larger the company, the more the impact it will have on determining the price of the overall index.

The S&P 100 is similar to the S&P 500, but it is composed of the 100 largest companies on the market, with 79 from the NYSE and 21 from the NASDAQ.

Lastly, the Dow Jones Industrial Average is made up of 30 stocks, with 26 based on the NYSE and 4 based on the NASDAQ. The Dow ensures that it picks companies from every industry, while the S&P 100 picks the 100 largest companies by market capitalization. That’s why Travellers Companies Inc., at a market cap of $34 billion, is the only company on the Dow that is not on the S&P 100.

Related Topics:dow jones s&p 500 nasdaq djia nyse s&p 100 dow jones industrial average

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Technology

Which Companies Make Up the “Magnificent Seven” Stocks?

FAANG is dead… meet the ‘Magnificent Seven’ stocks that now make up over 25% of the S&P 500.

Published

18 hours ago

December 7, 2023

Marcus Lu

This cropped chart highlights the Magnificent Seven stocks, a group of seven megacap stocks that replace the previous FAANG.

Which Companies Make Up the “Magnificent Seven” Stocks?

In 2013 CNBC analyst Jim Cramer popularized “FANG,” comprised of Facebook (now Meta), Amazon, Netflix, and Google (now Alphabet), as a shorthand for the best performing technology stocks on the market. Apple, added in 2017, made it FAANG.

However, over the last year a new moniker given by Bank of America analyst Michael Hartnett highlights the most valuable and popularly-owned companies on the American stock market: the “Magnificent Seven” stocks.

We visualize the Magnificent Seven’s market capitalization and 5-year stock performance as of November 2023 using data from Google Finance and CompaniesMarketCap.

The Magnificent Seven Stocks by Market Cap and 5-Year Return

The Magnificent Seven stocks are megacap companies focused and capitalizing on tech growth trends including AI, cloud computing, and cutting-edge hardware and software.

Four of the five FAANG stocks retain their place amongst the Magnificent Seven, with newcomers Nvidia, Tesla, and Microsoft joining the group. Following a poor 2022 performance and having more difficulty capitalizing on tech trends, Netflix is the sole FAANG company not included.

Here’s a look at the companies ranked by their market capitalization on November 6, 2023, alongside their 5-year stock performance:

Rank	Company	Market Cap	5 Year Performance
1	Apple	$2.8 trillion	+250%
2	Microsoft	$2.6 trillion	+224%
3	Alphabet	$1.6 trillion	+141%
4	Amazon	$1.4 trillion	+63%
5	Nvidia	$1.1 trillion	+783%
6	Meta	$811 billion	+118%
7	Tesla	$690 billion	+829%

The Magnificent Seven make up more than one-quarter of the S&P 500 and more than half of the Nasdaq 100.

Meanwhile, five of the seven are part of the rare trillion dollar club, with Nvidia being the most recent entry.

A common theme among the Magnificent Seven is their ability to collect vast amounts of customer data, create cutting-edge hardware and software, as well as harness the power of AI.

However, if Netflix gets back on track—recently announcing its new ad-supported membership tier has 15 million subscribers—we could soon see a “Magnificent Eight.”