Visualizing the incredible surge in tech stocks 📊
Markets & Mayhem 🤖
Mega Cap Tech Stocks hit their most overbought level in more than 6 years last week
Source: Barchart, Bloomberg
Large tech stocks just keep getting bigger: The S&P 500 Equal Weight index relative to the S&P 500 is now at its lowest level since the 2008 Financial Crisis
This ratio has accelerated as the S&P 500 has rallied by 14% year-to-date while the equal-weight by just 5%. The disconnect has been driven by the 5 largest stocks which have seen a 32% gain combined this year. Since January 2023, the S&P 500 is up a massive 41% while the equal-weight index is up just 16%. At the same time, Russell 2000 Equal Weight is nearly flat, up just ~3%. Source: The Kobeissi Letter, The Daily Shot
JUST IN: 🍏 Apple stops work on the Apple Vision Pro 2 due to slow demand
Apple is now working on a cheaper model to launch late 2025 Radar🚨
The market cap of technology stocks as a percentage of the S&P 500 just hit a record 44%
This percentage is now ~12% higher than after the 2000 Dot-com bubble peak of 32%. Over the last 10 years, this share has more than DOUBLED. Also, since 2014 Nasdaq 100 has added 426% compared to a 182% gain in the S&P 500. Are tech stocks set to account for the majority of the S&P 500? Source: The Kobeissi Letter
Nvidia to get 20% weighting in SPDR Tech ETF
Source: CNBC
Tech strength is not that clear once you disaggregate
Source: Daniel Lacalle X via NDR
Europe is way behind in Tech 💻
Source: Science Is Strategic, The Economist, Pitchbook #venturecapital
