Will Facebook affect the entire stock market?

It is generally assumed that the US equity market is performing strongly as the indexes such as the Dow Jones, the S & P 500 and the Nasdaq shave high. But appearances are deceiving. It is mainly the FAANG shares Facebook, Apple, Amazon, Netflix and Google that make the good weather. Google exceeded expectations, but Facebook is now heading under.
And that can have consequences.
Since the start of the bull market in 2009, the S & P 500 has risen by about 300%. But it can mainly thank the FAANGs for that. For example, Apple rose more than 1,000%, Amazon more than 2,000% and Netflix more than 6,000%.

A few stocks determine the index

If you do not have these shares in your portfolio and you feel that you have missed this bull market, that's right. The inequality within an index like the S & P 500 is huge:
10 shares (including the FAANGs) are responsible for 100% of the increase of the S & P 500 this year
Without the FAANGs, the S & P 500 would be in the red this year
The 20 largest shares in the S & P 500 together are larger than the 400 smallest shares
Since the beginning of this year, the market value of Facebook, Google, Amazon, Microsoft and Apple has already - increased by $ 812 billion (before the decline of Facebook).
From hero to zero?

FAANGs had become 'can't-lose' shares that everyone should have. They are also in almost every popular ETF and in the portfolio of almost every hedge fund manager. The question now will be whether this sharp fall in Facebook is again a bump in the road, or the beginning of the end for the FAANGs. In the latter case that can drag the entire stock market into a trap.

Source: R.I.A.