The Kobeissi Letter(@KobeissiLetter):Earnings growth is beginning to justify market concentration. The top 10 US stocks now account for 40% of the S&P 500’s market cap, near their highest proportion on record. Meanwhile, earnings generated by the top 10 now represent a record 38% of the S&P 500’s total earnings. This percentage has DOUBLED since the 2022 bear market. By comparison, this proportion stood at ~30% in November 2025, while the top 10 still represented ~40% of the S&P 500’s market cap. To put this into perspective, at the 2000 Dot-Com Bubble peak, the top 10 accounted for just ~15% of the S&P 500’s total profits while accounting for ~27% of its market cap. A handful of stocks are now driving both the market and its earnings.

2026.08.26 23:46

Earnings growth is beginning to justify market concentration. The top 10 US stocks now account for 40% of the S&P 500’s market cap, near their highest proportion on record. Meanwhile, earnings generated by the top 10 now represent a record 38% of the S&P 500’s total earnings. This percentage has DOUBLED since the 2022 bear market. By comparison, this proportion stood at ~30% in November 2025, while the top 10 still represented ~40% of the S&P 500’s market cap. To put this into perspective, at the 2000 Dot-Com Bubble peak, the top 10 accounted for just ~15% of the S&P 500’s total profits while accounting for ~27% of its market cap. A handful of stocks are now driving both the market and its earnings.