Tech Sector Reaches Record 49% of S&P 500 Market Cap
The Technology, Media, and Telecom (TMT) sector now accounts for 49% of the S&P 500's market value, surpassing the Dot-Com Bubble peak and exceeding the combined weight of financials, cyclicals, and defensives.
The Technology, Media, and Telecom (TMT) sector now represents a record 49% of the S&P 500's total market capitalization. This concentration is roughly 9 percentage points above the peak of the 2000 Dot-Com Bubble and around 20 percentage points higher than the late-1960s high.
To put this in perspective, TMT's current weight is larger than the combined market caps of the financials, cyclicals, and defensives sectors. During the 2008 Financial Crisis, TMT accounted for only about 19% of the S&P 500.
This marks the highest level of tech reliance in the index's history, highlighting an unprecedented dominance of Big Tech in US equities.
Source: The Kobeissi Letter