Stock-market strategists have been complaining about the dangers of a lopsided U.S. equity market all year. Now it looks like those concerns are finally being validated as the market sinks, with the best performers leading the way lower.
Since the S&P 500 reached its 2023 closing high of 4,588.96 on July 31, the index has fallen 5.5%, according to FactSet data through Friday’s close. Over the same period, most members of the so-called Magnificent Seven group of megacap technology stocks have underperformed, with Apple Inc.
down 10%, Microsoft Corp.
down 5.8% and Nvidia Corp.
the chip maker that has been the star of this year’s U.S. stock-market rally, down 9.4%. Despite these recent losses, the seven largest stocks in the S&P 500 are still up more than 50% year to date, while the remaining 493 companies in the index have barely gained 5%, according to Torsten Slok, chief economist at private-equity giant Apollo Asset Management.
“The bottom line is that if you buy the S&P 500 today, you a …