Published - May 16th, 2023 @ 11:00 AM (GMT+2)

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In an extraordinary turn of events, Apple Inc.'s market capitalization exceeded the combined worth of the Russell 2000 for a fortnight. This historical performance is the longest ever documented, as revealed by Bloomberg data.

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Apple's market cap exceeded the Russell 2000 for a record two weeks.

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Market capitalization, which evaluates a company's worth by factoring the total value of its outstanding stock, saw Apple outperform the Russell 2000(RUT),starting from April 27, maintaining its edge up until Monday. This feat was achieved only once before, albeit briefly, on September 1, 2020, when Apple surpassed the small-cap index just for a day.
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Apple's value advantage over this cluster of small-cap equities has expanded over the previous fortnight, as the tech behemoth posted earnings that outperformed the forecasts of Wall Street analysts.
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Strong earnings propelled Apple's value advantage.

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Apple, with its market capitalization of nearly $2.7 trillion, is currently worth around $100 billion more than the aggregate value of all 2,000 companies listed in the Russell 2000, as per the Bloomberg data provided to MarketWatch.

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Apple's worth outstrips all Russell 2000 companies by $100 billion.
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However, the disparity lessened on Monday when Apple's shares fell by 0.4% to $171.80, while the Russell 2000 rose 1.3% to trade at 1,763.

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Despite this, major US equity indices have seen robust performance in 2023, with notable indices like the S&P 500 and Nasdaq Composite leading the charge. However, this strength could hide weaknesses in other market parts.

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Both the S&P 500, with a YTD rise of over 7%, and the Nasdaq Composite, which has surged nearly 18%, owe their substantial gains to a few technology giants, like: Apple. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) and Nvidia Corp. (NASDAQ:NVDA).

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Tech giants, including Apple, drive 2023 US equity indices gains.
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The leading 10 companies in the S&P 500 carry a 29% weight in the index and are credited with around 70% of its year-to-date performance gains, as per a recent MarketWatch report.

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On the other hand, the Russell 2000 has seen no significant changes since 2023 began. In stark contrast, Apple has seen an impressive surge of over 32% since January 1, as per FactSet data. This sluggish performance of small-caps has triggered talks about potential buying opportunities, as market experts conveyed to Barron’s.

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Apple's performance sparks talks of small-cap buying opportunities.

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Small-cap stocks have faced numerous challenges since 2023 commenced. Reduced corporate profits, a series of regional bank collapses, and warning signs of an impending recession have heavily impacted these stocks. Amid such uncertainties, investors have found refuge in the shares of mega-cap technology companies, especially after a harsh sell-off in 2022.

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Apple's recent quarterly earnings report brought a pleasant surprise in unexpected growth in its iPhone business, offsetting a shortfall in Mac revenue. The tech giant further pledged billions more in dividends and stock buybacks to its investors, increasing its stock price. Consequently, Apple's shares traded at an elevated rate in response.

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The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.

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