the postearnings selloff in tesla and netflix shares on thursday is weighing on the sp 500 and nasdaq composite highlighting the risks of the 2023 stockmarket rallys narrow leadership though the rally has been broadening in recent weeks most of this years gains have been driven by a small cohort of megacap tech stocks including tesla the sp 500 and nasdaq are weighted by market cap meaning the biggest companies have a greater influence on index performance than the smallest companies the earnings reporting season is rife with opportunities for sharp swings in individual stocks as investors react to quarterly results that makes the major indexes vulnerable to a pullback if a few heavyweights fall “the danger of any market being so topheavy is that if any of them slip they can really drive the market south said eric sterner chief investment officer at apollon wealth management the stakes get higher next week as some of the biggest tech companies in the us are set to report earnings including alphabet microsoft and meta platforms