The 2021 S&P 500 has become the star of Wall Street

    So far in 2021, the S&P 500 has gained 28%, more than the 23% Nasdaq Composite and hit a new all-time high.

Compare the performance of the Nasdaq and S&P in 2021:

2021 started 2021 on a strong note for the Nasdaq, with inflation surging to 4% in April and 6.8% in November. The Federal Reserve initially expected the price increase to be temporary. However, the inflation has persisted, prompting the central bank to take a more aggressive side, citing an expected rate hike in 2022 that has dealt a double whammy to the high price-to-earnings ratio tech stocks. Investors, concerned about the demand side of some of their businesses, are also switching to sectors that tend to perform better in an environment of rising interest rates.

In the S&P 500, the best-performing sector this year, benefiting from a series of massive stimulus from the Federal Reserve, was the energy sector, reflecting soaring gasoline prices. Second is real estate, which delivers high dividends and a surge in demand for warehouse space and residential properties that has bolstered the industry's earnings.

Tech stocks aren't far behind. largely because big-cap companies like Apple and Microsoft are doing well and make up a big chunk of tech and the S&P 500. The main question facing some stocks on the Nasdaq is whether earnings growth can keep up with rising stock prices.

From the end of 2016 to the end of 2020, the Nasdaq was a winner every year, up 139%, compared with the S&P 500's 68% gain.