Tech’s Influence Over Markets Eclipses Dot-Com Bubble Peak

Companies that do everything from manufacturing phones to operating social-media platforms now account for nearly 40% of the S&P 500

Technology companies are set to end the year with their greatest share of the stock market ever, topping a dot-com era peak in the latest illustration of their growing influence on global consumers.

Companies that do everything from manufacturing phones to operating social-media platforms now account for nearly 40% of the S&P 500, on pace to eclipse a record of 37% from 1999, according to a Dow Jones Market Data analysis of annual market-value data going back 30 years. Apple Inc., which earlier this year became the first U.S. company to hit a $2 trillion market capitalization, accounts for more than 7% of the index on its own. Early last month, it accounted for 8% of the S&P, the largest share ever for any stock in data going back to 1998.

Despite a recent pullback in popular tech stocks like Apple and Netflix Inc., many of these companies still number among the market’s leaders for 2020, powering the S&P 500 to a nearly 8% gain for the year and keeping it near all-time highs during the coronavirus-induced economic slowdown. Tech stocks lifted markets early this past week before dragging them down later, highlighting their sway over the major stock indexes.

Trends like remote work and cloud computing are driving growth at these firms, helping tech companies expand their businesses when many are struggling. Yet the concentration of gains in a narrow group of companies香蕉视频苹果下载 concerns many investors, who worry that stocks are too dependent on the sector and that a significant pullback in a few names could bring down markets.

Previous peaks in a sector’s influence over the S&P 500 have preceded selloffs. The tech sector tumbled after the dot-com bubble burst. Banks’ influence over markets peaked in 2006 ahead of the financial crisis, and energy stocks slid after hitting a new high in their share of the index in 2008.

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