Tech Giants' Dominance in S&P 500 Threatens Energy Sector and Bull Market

Big Tech's market value in the S&P 500 index has surged to over a quarter of the index, with just seven stocks this year adding heft larger than the weight of its entire energy sector, according to DataTrek Research. Big Tech has “gained 7.4 points of S&P 500 weighting” in 2023, exceeding the weighting of the index’s entire large-cap energy sector. Shares of Big Tech companies have skyrocketed this year against “an otherwise standstill U.S. equity market,” driving the S&P 500’s gains. While the rest of the S&P 500 may be starting to benefit from “stabilizing” expectations for company earnings, Big Tech valuations are “high,” according to DataTrek.