Chart from the Day: One > 2000

by | May 16, 2023

Apple eclipsing the Russell 2000 tells a tale of two divergent markets

Twitter is abuzz with the news that Apple’s market cap recently surpassed that of the Russell 2000. This is one example of the various charts that are making the rounds:


Becoming larger than the combined value of 2000 small-cap stocks is the latest, somewhat arbitrary, threshold that Apple has crossed.

Even before it eclipsed the Russell 2000, Apple was already larger than:

  • The entire S&P 400 mid-cap index
  • 4 of the 11 sectors in the S&P 500 (Materials, Real Estate, Utilities and Energy)
  • Every country in the All-Country World Index except Japan.

Think about that – Apple has a larger market cap than the entire S&P 500 Energy sector and has a larger weighting in the ACWI than the UK.

What is important is not the relative sizes in Apple and small-caps, but the divergent directions in which they are heading. This crossover comes as Apple has soared more than 30% so far this year while the Russell 2000 is struggling to tread water.

Mega-caps are fueling an index-level test of resistance while beneath the surface more stocks are making new highs than new lows (and have been for 10 weeks in a row).

In other words, we’ve still got the generals leading a charge and the foot soldiers refusing to take the field. It makes for a good story, but history shows it’s not a recipe for success – on the battlefield or in the market.

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