Technology looks too top-heavy in S&P 500 for Jefferies

Technology stocks have become so top-heavy within the S&P 500 Index that they pose a risk for the broader market, according to Sean Darby, Jefferies Group Inc.’s chief global equity strategist. Darby raised the issue in a report Wednesday after estimating that technology accounts for 40% of the S&P 500, above a peak in March 2000. The figure reflects the total weight of companies in the S&P 500 Technology Index along with Amazon.com Inc. and Netflix Inc., which Darby cited though they aren’t in the industry gauge, and companies such as Facebook Inc. that were removed in 2018.