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Market Extra: Just 77 companies are powering the global stock market rally

If the global economy is weakening, why have global markets rallied so forcefully this year?

That’s a question investors would be wise to consider as evidence mounts of economic growth slowing in Asia, Europe and the U.S. and as falling yields on government bonds indicate that at least bond investors are preparing themselves for tougher times ahead.

One reason for the discrepancy between the rise in broad indexes like the S&P 500 SPX, +0.77% or the MSCI World Index 892400, +0.25% which have gained 19.5% and 16.7%, respectively, and what appears to be a weakening global economy is that the advance is being powered by just a handful of megacap companies who’s global scale and reach allow them to better handle rising trade tensions and weakening demand and keep their sales and profits rising.

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