That’s the assessment from Nick Colas, co-founder of DataTrek Research, who ran the numbers:
Microsoft: 1.3 points
Apple: 0.8 points
Amazon: 0.8 points
Alphabet: 0.1 points
Facebook: 0.8 points
That results in a grand total of 3.8 points of the S&P 500’s 15.3% gain year-to-date. Without these five stocks, the S&P 500 would be up 11.5%.
“S&P 500 returns over the next 3-5 years are inextricably linked to the performance of the Tech sector and especially those 5 names,” wrote Nick Colas, co-founder of DataTrek Research in a note to clients on Tuesday.
For context, Microsoft and Apple are in the Technology Sector, while Amazon is in the Consumer Discretionary Sector. Facebook and Alphabet are in the newly created Communication Services sector.
Uber and Lyft
“Names like Uber, Lyft and WeWork will be unable to boost index returns until they turn profitable and become eligible for inclusion in the S&P 500,” he wrote.
The Power of Microsoft
While the aforementioned five stocks are powerful for the broader market, one in particular has been taking on extra importance in recent weeks: Microsoft.
The S&P 500 is off just about 1.3% since its May 1 intraday record high, which is also the day that Apple shares reached a 2019 high. Yet, Apple shares are down a much steeper 9.3% since then.
How has the market been able to move back near record highs even with Apple flirting with correction territory? Microsoft.
The stock has hit multiple record highs recently and has a market cap of over $1 trillion. It’s up over 6% since May 1.
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter @ScottGamm.
More from Scott: