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as the S&P 500 and Nasdaq Composite means that weakness in just a few names can have broad ramifications as the indexes hover at record highs."When a handful of stocks dominate the market ... if you do have a period of disappointment from those stocks, you could see disproportionate impacts on your portfolio from just a handful of company-specific issues," said Michael Reynolds, vice president of investment strategy at Glenmede.Drawing attention to such top-heavy market leadership on Wednesday will be earnings results due from Google parent Alphabet and Tesla, the first of the "Magnificent Seven" megacaps to report this period.That group - which also includes Nvidia, Microsoft, Apple, Amazon and Meta Platforms - earned the "Magnificent" moniker because of their dominant business positions and huge stock gains in 2023 and 2024.Stock performance this year among the Magnificent Seven has been mixed. But they have all rebounded since April from a selloff following President Donald Trump's "Liberation Day" announcement of sweeping global tariffs.The group amounted to one-third of the weight of the S&P 500 as of Friday, due to their massive market caps, their largest combined presence since the start of the year, according to LSEG Datastream.Alphabet shares are up about 1% on the year, while shares of Elon Musk-led Tesla are down about 18%. Together, they account for over 5% of the S&P 500's weight.Other data points also indicate market concentration becoming more extreme.The top 10 weights in the S&P 500 last week hit 37.3% of the index, near the 38% level it reached in January, which had been its highest level on record, according to S&P Dow Jones Indices, citing data since 1975.These massive stocks generally have higher valuations. The top 10 stocks have an average price-to-earnings ratio of about 26 times, compared to 20 times for the rest of the S&P 500, said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management."The biggest stocks are very expensive," Shalett said. "If the biggest stocks fall the most, the index is very vulnerable."The S&P 500 technology sector recently accounted for 33.9% of the entire S&P 500's market value, the largest share since March 2000 during the height of the dot-com bubble era, according to LSEG Datastream.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,373.25 +26.50 (+0.42%)Dow Futures44,944.00 +233.00 (+0.52%)Nasdaq Futures23,275.00 +48.75 (+0.21%)Russell 2000 Futures2,285.30 +24.60 (+1.09%)VIX16.16 -0.34 (-2.06%)Gold3,435.40 -8.30 (-0.24%)PortfolioSign in to access your portfolioSign inTop gainersMEDP Medpace Holdings, Inc. 477.73 +168.85 (+54.67%)IQV IQVIA Holdings Inc. 187.38 +28.42 (+17.88%)DHI D.R. Horton, Inc. 153.50 +22.28 (+16.98%)NEGG Newegg Commerce, Inc. 30.53 +4.19 (+15.91%)ICLR ICON Public Limited Company 161.50 +21.87 (+15.66%)Top losersBMI Badger Meter, Inc. 204.80 -40.42 (-16.48%)LMT Lockheed Martin Corporation 410.74 -49.79 (-10.81%)THC Tenet Healthcare Corporation 155.97 -18.68 (-10.70%)MCRB Seres Therapeutics, Inc. 12.39 -1.46 (-10.54%)MSCI MSCI Inc. 526.48 -51.49 (-8.91%)Most activeOPEN Opendoor Technologies Inc. 2.8800 -0.3300 (-10.28%)LCID Lucid Group, Inc. 3.1300 +0.3100 (+10.99%)NVDA NVIDIA Corporation 167.03 -4.35 (-2.54%)NIO NIO Inc. 5.01 +0.49 (+10.84%)QS QuantumScape Corporation 13.80 +1.28 (+10.22%)Earnings eventsTrending tickersDNUT Krispy Kreme, Inc. 4.1300 +0.8700 (+26.69%)KSS Kohl's Corporation 14.34 +3.92 (+37.62%)RKT Rocket Companies, Inc. 16.00 +0.96 (+6.38%)GPRO GoPro, Inc. 1.3700 +0.3986 (+41.03%)LMT Lockheed Martin Corporation 410.74 -49.79 (-10.81%)Top economic events