Chart of the Day: Wider Winners Circle

Today’s Chart of the Day created in YCharts with data from Morningstar compares the performance of the S&P 500 with small-cap, mid-cap, and equal-weighted indexes through July. After leading the market for several years, the S&P 500 has taken a back seat in 2026. That’s not a knock on its performance, as an 8% gain is still in line with its long-term average, but rather a reflection of the strong returns coming from smaller companies.

The equal-weighted S&P 500 is also worth noting. Unlike the traditional index, where the largest companies have the biggest impact on returns, the equal-weighted version gives every company the same influence. Its strong performance suggests market gains are being driven by a broader group of stocks rather than just a handful of mega-cap names.

With small caps, mid-caps, and the equal-weighted index all up more than 10% this year, the winners’ circle is clearly expanding. That’s an encouraging sign for investors, as it points to a healthier and more diversified market rally with less reliance on a small group of companies to drive returns.