Thursday, July 16, 2020

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 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.

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