Identity crisis? S&P now tracks closer to Nvidia than its 500 components

As Nvidia (NVDA) goes, so goes the market — literally.

In a case of one stock becoming its own benchmark, the S&P 500 (SP500) (SPY) (IVV) (VOO) is now more closely correlated to AI heavyweight Nvidia than to its own equal-weight index (RSP).

Brian Garrett, head of equity execution on Goldman’s Cross Asset Sales desk, highlighted the divergence in a 10-day realized correlation chart — a split last seen in February and back this month (hat tip to @WallStJesus).

Nvidia recently topped $5 trillion in market cap and has a weighting of 7.77% in the S&P, more than a full percentage point above No. 2 Apple (AAPL).