NEW YORK (Reuters) – Investors are once again crowding into a narrow range of technology and internet stocks, heightening concerns that the market’s dramatic bounce from last month’s lows is becoming increasingly vulnerable to sharp reversals as the coronavirus outbreak continues to batter the economy.
FILE PHOTO: The logos of mobile apps, Google, Amazon, Facebook, Apple and Netflix, are displayed on a screen in this illustration picture taken December 3, 2019. REUTERS/Regis Duvignau
Just five stocks – Microsoft, Apple, Amazon, Google parent Alphabet and Facebook – account for more than 20% of the market cap of the entire S&P 500 index, according to BofA Global Research. That’s a greater concentration in the top stocks than was seen during the dotcom bubble of 2000, analysts at the bank wrote.
The information technology sector carried a 25.4% weighting in the S&P 500 as of Friday, far more than the other 10 major sectors and slightly more than its weighting on Feb. 19, when…
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