Microsoft to Dethrone Apple in S&P 500 Influence after 2013 Losses
Apple appears to be in danger of having its four-year run as the leading mover in the S&P 500 stock index ended by its rival, Microsoft, after a rough year in the markets. The company’s position stems from a combination of factors. The S&P 500 is a weighted index, which means certain companies are given more power over the movement of the index than others and weights are based broadly on each company’s market capitalization.
By the virtue of its market cap, Apple enjoys the highest weighing in the index at roughly 3%. This means little when the stock is up but magnifies the effect of a downturn, similar to the one that Apple faced this year, having slumping by around 1% year-to-date.
Microsoft sports the third-highest weight in the index with just under 2%. Combined with the company’s nearly 40% year-to-date share price leap and second place ExxonMobil’s lackluster performance, Microsoft, rather than Apple, is the tech company that is most likely to lead the S&P 500 when trading closes on December 31.
Based on data compiled earlier this week by Bloomberg
, Apple is not only in danger of losing its leadership position but it may even be the biggest drag on the index. At the close of trading on Monday, Apple’s 13.74 point slump was good enough for a corresponding 1.6-index point decline for the S&P, compared to a 9.2-index point boost from Microsoft.
We’ll have to wait and see what happens ultimately.