Tech is giving dotcom bubble vibes. Goldman Sachs’ trading desk pointed out that the S & P 500 tech sector makes up more than a third of the index’s total market cap — matching a record going back to 1999 and early 2000. “In total, the subsector boasts a market cap of ~$18.5trn – this subsector market cap size alone is larger than the entire market cap of every country outside of the U.S.,” the trading desk said. Major market concentration in one sector is not new, even for this bull run. Despite some instances in which other sectors began outperforming, tech has remained the Wall Street stalwart during the run to record highs over the past few years. However, the current size of tech makes the broader market vulnerable to idiosyncratic pressures in the space. .SPX YTD mountain SPX year to date Tech could be under pressure in the next two weeks, as major names get set to report earnings . Alphabetis slated to post results Wednesday after the bell. Microsoft, Apple, Amazon and Meta Platforms are due out next week. The market will need to see strong numbers from these names for the S & P 500 to continue its march to record levels. The benchmark on Monday posted fresh all-time closing and intraday highs. On top of that, the rest of the S & P 500 may be showing signs of fatigue. The Invesco S & P 500 Equal Weight ETF (RSP) closed lower on Monday, as it gave up an earlier gain for the day. To be sure, one day doesn’t make a trend. But if the S & P 500 ex-tech slides and the rest of the market can’t pick up the slack — it could be trouble ahead for investors.
