Visual Capitalist: The S&P 500 Makes Up 51% Of Global Stock Market Value
The S&P 500 Now Makes Up 51% of Global Stock Market Value
This graphic breaks down the global equity market into five major pieces as of Dec. 31, 2023, using data from S&P Dow Jones Indices.
It highlights the massive share of market capitalization that is located in the U.S., particularly within the S&P 500 index.
Data and Key Takeaways
The figures we used to create this graphic are listed in the table below.
| Name | Share of Global Equity Market Capitalization (%) |
|---|---|
| S&P 500 | 51 |
| Rest of U.S. | 8 |
| Developed Markets Ex-U.S. | 30 |
| China | 3 |
| Emerging Markets Ex-China | 8 |
As of the end of 2023, companies listed in the U.S. accounted for 59% of global stock market value. Most of this value is in the S&P 500 index, which consists of the 500 largest publicly traded companies in the country.
Nearly all of the world’s trillion-dollar companies belong in the S&P 500: Apple, Nvidia, Microsoft, Alphabet, Amazon, and Meta (also known as the Magnificent Seven)
Looking Outside the U.S.
After U.S. markets, Developed Markets ex-U.S. account for the next biggest share. Shown as the green segment in the chart, developed markets are economies with established financial systems and high levels of income.
Excluding the U.S., the largest developed markets (by capitalization) according to S&P are Japan, UK, Canada, France, and Switzerland.
Finally, there’s Emerging Markets (yellow section) and China (red section). China is considered an emerging market, but was shown separately given its significance to the global economy.
According to S&P, the largest emerging markets (by capitalization) are China, India, Taiwan, Brazil, and Saudi Arabia. Emerging markets are economies in the process of rapid growth and industrialization, as well as higher volatility.
As of October 2024, the most valuable emerging markets companies are Saudi Arabia’s Saudi Aramco and Taiwan’s TSMC.
Source: https://www.visualcapitalist.com/breaking-down-the-global-equity-market-into-five-pieces/