Only 5 Stocks Are Driving The Market: CNN Business

Despite anxiety about inflation and the Omicron variant, the stock market is on track for another banner year. That's in large part thanks to stellar gains from just a handful of stocks, Julia Horowitz reported for CNN Business.

Photo Insert: Nvidia was among the companies named by Goldman Sachs

What's happening: According to new research from Goldman Sachs, just five companies — Microsoft, Apple, Nvidia, Tesla, and Google parent Alphabet — have contributed 51% of S&P 500 returns since April. Going back to the beginning of the year, they account for more than a third of the index's rise.

We've spilled plenty of ink talking about the clout of FAANG stocks — Facebook, Apple, Amazon, Netflix, and Google. But is it time to retire FAANG and ring in the era of ... MANTA? After shooting up 76% in 2020, Amazon's stock is up just 6% this year, compared to a nearly 26% rise in the S&P 500.

Supply chain problems and pay hikes to recruit and retain workers have eaten into Amazon's profits despite the ongoing boom in online shopping.

Netflix's stock has also lost steam, rising 13% this year after skyrocketing 67% in 2020. The company has scored big with shows like "Squid Game," but investors are worried about whether the company can keep rapidly recruiting subscribers as competition among streaming services grows.

Facebook, now called Meta, has done slightly better, jumping 21% year-to-date. But that leaves it on track for its worst year since 2018, as investors weigh regulatory threats and the social network's pivot to virtual reality. Shares in Apple and Google have popped 35% and 69%, respectively. That's good enough to join the MANTA club.

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