CHART OF THE DAY: The Magnificent 7 stocks are now roughly equal to the combined value of the UK, Japan, and Canada's stock markets

• The Magnificent Seven stocks have ballooned to the size of three nations' stock markets combined.

• The group was valued at $11.7 trillion yesterday, about equal to the UK, Japan, and Canada's stock market.

• Concerns are growing that a handful of richly valued stocks are driving the unsustainable performance of the S&P 500.

Our Chart of the Day comes from Apollo Global Management, which shows that the market value of the "Magnificent Seven" stocks has ballooned to the size of three developed nations' stock markets combined.

The Magnificent Seven — Amazon, Apple, Alphabet, Meta, Nvidia, Tesla, and Microsoft — had a total market value of $11.7 trillion at the closing bell on Tuesday. That's worth about the same as the entire stock markets of the UK, Canada, and Japan combined, according to Bloomberg data compiled by Apollo's chief economist Torsten Sløk.

The group of tech titans reaped monster returns in 2023, rising 107%.

In fact, the seven stocks accounted for most of the gains in the S&P 500 last year, with the rest of the index trading relatively flat. That's sparked concern of a speculative AI bubble forming in the market, making mega-cap stocks like Microsoft, Amazon, and Nvidia overvalued as investors chase the hype.

The valuations of the Magnificent Seven stocks are "extreme," according to Richard Bernstein Advisors. That could lead the market to see-saw in the other direction, producing a once-in-a-generation investment opportunity in virtually every area away from the Magnificent Seven, the investment advisor said in a research note at the end of last year.

"The Magnificent Seven's significant outperformance might be justified if they were truly unique. Unfortunately, that is not the case," the firm said. "Rather, it increasingly seems investors' enthusiasm for these seven stocks is a reflection of today's speculative, momentum-driven market. But investors' myopia has resulted in tremendous opportunities elsewhere."

The Magnificent Seven have taken a hit to start the new year, with their collective market cap tumbling by $250 billion on the first trading day of 2024. Apple saw the steepest decline, sliding 4% to lose $100 billion in market value.

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