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US Stock Market Cap

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US Stock Market Cap

Hi MM, It's more a comment than a question. I saw a slide on another webinar that showed the US stock market cap is 70% of the world's stock market cap. This is with the US having just over 4% of the world's population. While there are clearly some very big (tech and other) companies in the US, I found this quite astonishing. Regards, Peter

Answer

Hi Peter,

We like interesting statistics at MM!

The total value of all stock markets globally is ~$US110 Trillion and the total US market is just under half of that, about $50 Trillion. You are right in terms of their population, which implies they are doing a very good job of attracting global companies onto their market. This is a result of supportive policies, great market framework & integrity, and the US currency being the global reserve.

  • The S&P 500 is the major index in the US and in terms of concentration of companies, the “Magnificent Seven” make up 30-35% of the S&P500, which is astonishing.

If President-elect gets his way to “Make America Great Again” the disproportional representation could stretch much further.

  • More broadly, the US accounts for almost a quarter of the global economy (GDP). This highlights its outsized economic influence relative to its population with the U.S.’s dominance driven by sectors like technology, finance, healthcare, and a high consumer spending rate.
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