Ascending Tech Dominates S&P 500 Like No Time Since Dot-Com Bust
- Yet unlike 2000, profit contribution matches market weight
- Expanding earnings buck the broad trend of negative growth
Warning Signs of a Market Valuation Bubble
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Don’t look now, but technology companies are exerting more control over the U.S. stock market than any time since the internet bubble.
Fueled by three-year rallies in which Microsoft Corp. and Alphabet Inc. doubled, Amazon.com Inc. tripled and Facebook Inc. surged fivefold, computer and software stocks have increased to almost 21 percent of the S&P 500 Index’s value, near a 15-year high. The distance between tech and the next-biggest group, banks, is close to the widest ever.