The United States has firmly cemented itself as the leader of the global stock market, commanding over 50% of the global market capitalization. With a staggering $62 trillion in market cap, the US market dwarfs the stock markets of many countries including UK, Japan, China, Canada and India combined, according to CompaniesMarketCap data.
The US market's dominance isn’t just about the broader market, it is driven by a handful of corporate giants. Companies like Apple, Nvidia, Microsoft, Amazon, Tesla, and others in the US top 10 now make up a whopping 32% of the US stock market cap.
The US stock market eclipses next 5 markets combined
Stock markets worldwide are valued at approximately $115 trillion, and the US alone accounts for more than half of it. The sheer magnitude of this number is mind-blowing, considering that China, the second-largest market, holds just $7.2 trillion, a mere 6.3% of the total m-cap. Other major economies like Japan ($5.1 trillion), India ($4.8 trillion), and the UK ($3.7 trillion) are significantly behind.
Apple’s market cap alone ($3.56 trillion) is nearly equal to the entire stock market valuation of the UK ($3.7 trillion). Similarly, Nvidia ($3.21 trillion) is almost as big as the combined markets of Canada and India. These comparisons highlight just how dominant a few US companies are on the global stage.
What’s fueling this American stock market dominance? One major factor is the presence of global tech behemoths like Nvidia, Meta, Broadcom, Berkshire Hathaway etc. that continue to redefine industries, push innovation, and deliver enormous returns to investors.
The top 10 publicly traded US companies alone hold 32% of the country’s stock market capitalization. That’s more than the entire stock market valuation of several developed nations.
Here’s a quick look at the top 10 US corporate giants:
| Company | M-Cap |
| Apple | $3.56T |
| Nvidia | $3.21T |
| Microsoft | $3.04T |
| Amazon | $2.42T |
| Alphabet (Google) | $2.24T |
| Meta | $1.83T |
| Broadcom | $1.10T |
| Tesla | $1.08T |
| Berkshire Hathaway | $1.01 |
| Walmart | $832B |
| Total | $20.32T |
Source: CompaniesMarketCap | Data as on February 13, 2025
The dominance of Big Tech is evident as companies like Apple, Microsoft, Nvidia, and Alphabet (Google) not only lead in stock market valuation but also in innovation, AI development, cloud computing, and semiconductor advancements.
Why is the US stock market so dominant?
1. Tech leadership & innovation: The US is home to some of the most influential technology companies shaping industries worldwide. Companies like Nvidia, Meta, and Microsoft aren’t just big, they drive major trends in artificial intelligence (AI), cloud computing, and consumer technology.
For example, Nvidia’s chips power AI models used across industries. Apple, with its iPhones, PCs and MacBooks, has a strong global user base. Meanwhile, Microsoft’s software, like Windows and Office, is used by businesses, students, and professionals globally. These companies don't just operate in the US; they influence the way technology is used almost everywhere globally.
2. Robust financial markets: The US stock market is one of the most liquid and transparent, making it attractive to investors globally. When a company lists on Nasdaq or the New York Stock Exchange (NYSE), it gains access to a massive pool of investors, from large institutions to individual traders. Additionally, the US financial system has been established for much longer than some other markets and attracts trillions in global investment. Many investors look to US stocks and ETFs to diversify their portfolios.
3. Strong corporate earnings & economic growth: Despite economic ups and downs, US companies have shown resilience over the years. Many of them generate steady profits, invest in growth, and return capital to shareholders through dividends and stock buybacks.
For example, Apple’s revenue alone is higher than the GDP of many countries. Companies like Amazon have expanded into cloud computing and logistics, ensuring revenue streams beyond just e-commerce. Tesla, while known for electric cars, earns significant revenue from software and energy solutions.
4. Investor trust & global appeal: Many investors often see US stocks as a safe option, especially during economic uncertainties and look at them as a way to balance risk in their portfolios. For instance, during periods of market instability, investors tend to shift towards large, stable companies like Apple, Microsoft, or Google. This trust keeps global money flowing into the US market, reinforcing its dominance.
How can Indian investors invest in US stocks?
- US ETFs like SPDR S&P 500 ETF (SPY) or Invesco QQQ (QQQ) – These track the biggest US companies and can be bought via several investing platforms.
- Fractional Investing – Some brokerage firms now allow small investments in US stocks, known as fractional investing, making it possible to buy a part of expensive shares like Amazon or Tesla.
- Direct stock investments – Some platforms let Indian investors open accounts and directly invest in US stocks.
Risks to consider while investing in US stocks
- Valuation concerns: Some AI & tech stocks are priced very high compared to their earnings, which could lead to corrections.
- Regulatory scrutiny: Big Tech companies face legal challenges, including antitrust concerns, which could slow their growth.
- Currency risk: Indian investors need to consider rupee-dollar fluctuations, as changes in the exchange rate can impact returns.
While the US remains dominant, competition is rising. India’s stock market crossed a $4 trillion market cap recently, and its rapid economic growth could make it a bigger player globally. China is also working to strengthen its financial markets.
However, the US still benefits from strong companies, a mature financial system, and steady innovation. For investors, having exposure to US stocks, whether through direct investments or ETFs, can provide diversification and long-term growth opportunities.
Disclaimer
The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities are quoted as an example and not as a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. The Company strongly encourages its users / viewers to conduct their own research, consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to exchange investor redressal forum or arbitration mechanism. INDmoney Global (IFSC) Private Limited, Unit No. GA-02, Seat No. 1-4, Ground Floor, Pragya Accelerator Block-15 T, Road 11, Zone-1, Processing Area, GIFT SEZ, Gift City, Gandhinagar, Gujarat, India, 382355 IFSCA Broker Dealer Registration No. IFSC/BD/2023-24/0016, IFSCA DP Reg No: IFSC/DP/2023-24/010.