The S&P 500 hit another all-time high at Wednesday's close, as technology and communications services companies continue to fuel large-cap gains this year.
But tech has so far not been a boost for struggling small-cap stocks well into 2024.
The large-cap benchmark S&P 500 SPX is up 2.1% this month through Wednesday, with the information technology and communications services sectors each up more than 6%, according to FactSet data.
“There is considerable variation in sector performance among large-cap stocks,” analysts at Bespoke Investment Group said in an email note Wednesday. “Performance is more even in the small-cap space, but unfortunately on the downside.”
U.S. small-cap stocks, as measured by the S&P Small Cap 600 SML, will fall 3% from 2024 through Wednesday, according to FactSet data.
“The sectors with the greatest large-cap disparity are communications services and technology,” Bespoke said, adding that “these two sectors are also the sectors with the highest concentration of mega-caps.”
As the chart above shows, large-cap stocks have generally outperformed small-cap stocks in the U.S. this year, with two sector-level exceptions: real estate and materials. Both sectors of the S&P 500 and S&P Small Cap 600 are down, but small-cap stocks have fallen less since the beginning of the year.
Meanwhile, the energy, communications services and tech sectors led the S&P 500's gains on Wednesday, with the index closing at a record high for the fourth year in a row, FactSet data showed.
Netflix Inc. stock
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The company, which is part of the S&P 500's communications services sector, soared on Wednesday after the video streaming company announced its latest quarterly results after the market closed on Tuesday. Netflix rose 10.7% Wednesday, making it the best-performing stock in the S&P 500, according to FactSet data.
Additionally, companies from a small group of giant stocks known as Big Tech, which span tech, communications services and consumer sectors, have driven the S&P 500's rise this year.
tesla company
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The only one of the seven Big Tech stocks to fall so far in 2024 released its latest quarterly results after the closing bell on Wednesday.
Other big tech stocks include Nvidia stock.
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and Facebook's parent company, Meta Platforms Inc.
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Microsoft stock has soared this year.
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Google's parent company Alphabet Inc.
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Google
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Amazon.com Inc.
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and Apple Inc.
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At last check, the company has been profitable so far this year, according to FactSet data.
read: These three stock market sectors were the only winners during the S&P 500's two-year return to all-time highs
Major U.S. stock indexes ended mostly higher Wednesday, with the S&P 500 up 0.1%, the Dow Jones Industrial Average DJIA down 0.3% and the tech-heavy Nasdaq Composite COMP 0.4%, according to FactSet data. Rose.
Meanwhile, U.S. small-cap stocks fell, with the S&P Small-Cap 600 and Russell 2000 RUT each down 0.7% on Wednesday, FactSet data showed.