U.S. Tech Stocks Are Now Worth More Than $9 Trillion, Eclipsing The Entire European Stock Market by Sergei Klebnikov
https://www.forbes.com/sites/sergeiklebnikov/2020/08/28/us-tech-stocks-are-n
U.S. tech stocks have been pushing the stock market to record highs, and now the sector has now become more valuable than the entire European stock market for the first time in history, according to the latest research from Bank of America.
KEY FACTS
The bank said in a note that the total market capitalization of U.S. tech stocks reached $9.1 trillion, eclipsing that of the entire European market—including the UK and Switzerland, which is now valued at $8.9 trillion.
In 2007, by comparison, the European market was four times the size of the U.S. tech sector, the firm said.
The news comes as no surprise as big tech names continue to play a large role in leading the market to new record highs: The S&P 500 has rebounded over 55% from its low point in March.
But the growth has also led to rising concerns about the U.S. stock market becoming increasingly concentrated in a handful of megacap tech stocks.
The five biggest companies—Apple, Microsoft, Amazon, Google-parent Alphabet and Facebook—account for 23.8% of the S&P 500, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
KEY FACTS
The bank said in a note that the total market capitalization of U.S. tech stocks reached $9.1 trillion, eclipsing that of the entire European market—including the UK and Switzerland, which is now valued at $8.9 trillion.
In 2007, by comparison, the European market was four times the size of the U.S. tech sector, the firm said.
The news comes as no surprise as big tech names continue to play a large role in leading the market to new record highs: The S&P 500 has rebounded over 55% from its low point in March.
But the growth has also led to rising concerns about the U.S. stock market becoming increasingly concentrated in a handful of megacap tech stocks.
The five biggest companies—Apple, Microsoft, Amazon, Google-parent Alphabet and Facebook—account for 23.8% of the S&P 500, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
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