Big Tech's Dominance in US Stocks: No Cause for Concern

Wall Street strategists are expressing concerns about the concentration of Big Tech stocks in the stock market rally, but historical analysis suggests that there is little reason to fear. While Big Tech stocks now make up 28% of the S&P 500's total value, up from 20% at the start of the year, comparable stretches of narrow leadership, such as the tech bubble in the early 2000s, have been greater and longer-lasting. Additionally, the outlook for most of these companies is strong, although earnings reports in the coming weeks may be decisive. Valuations for tech shares are high by historical standards, but expectations for profit expansion among the top tech stocks remain solid.