By Lewis Krauskopf
NEW YORK, April 21 (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.
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