U.S. big tech dominates stock market after monster rally, leaving investors on edge

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U.S. technology giants are increasingly dominating the stock market in the midst of the coronavirus pandemic, even as they draw accusations of unfair business practices, and some investors fear the pump is primed for a tech-fueled sell-off.

) - now stands at more than $7 trillion, accounting for almost 25% of the index’s market capitalization. That compares with less than 20% pre-pandemic.

Some investors worry the companies powering this year’s equity rally could become the market’s Achilles’ heel if a legal assault, a shift to undervalued names or a move higher in bond yields dries up appetite for technology stocks. The decision “is just a first battle of many on the horizon,” said Dan Ives, an analyst at Wedbush Securities. “From a valuation perspective, there’s clearly an overhang around antitrust.”

“These few behemoths dominate their industry and can set the rules of the global economy,” said U.S. Senator Richard Blumenthal, a Democrat who has been outspoken about antitrust issues. “This kind of concentrated power is always dangerous.”

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