U.S. Tech Stocks Are Now Worth More than All of Europe’s Stock Market
August 28, 2020
The strength of U.S. tech stocks has grown to the point where the sector alone is worth more than the value of Europe’s total stock market.
According to Bank of America, the U.S. tech sector’s total market cap is $9.1 trillion. Europe, even with the U.K. and Switzerland included, amount to $8.9 trillion. To highlight the explosive growth in the tech sector, Bank of America notes that in 2007, Europe was worth more than four times the U.S. tech sector.
Some analysts have become worried about how much of the U.S. stock market is dominated by tech stocks, a trend that has accelerated under the pandemic. Just five companies–Apple, Alphabet, Facebook, Amazon and Microsoft–now account for more than 20% of the S&P 500.