Wall Street strategists are increasingly voicing concerns about the concentration of Big Tech stocks in this year’s stock-market rally. But if history is any guide, there’s little reason to fear.
Apple Inc., Microsoft Corp., Google parent Alphabet Inc., Amazon.com Inc., Nvidia Corp., Tesla Inc. and Facebook owner Meta Platforms Inc. now make up 28% of the S&P 500 Index’s total value, up from 20% at the start of the year, with a combined capitalization of around $10 trillion. That’s left the benchmark — and the roughly $15 trillion in assets tracking it — vulnerable if just one or two of these companies stumbles.