By Andrew Bary
Technology has never been more dominant in the stock market, and Nvidia now has a larger market value than the entire healthcare sector of the S&P 500 index.
Nvidia, whose stock is up 2.9% to $221.34 Monday after hitting a record high earlier in the session, has a market value of about $5.4 trillion, tops in the U.S. stock market and the world.
The healthcare sector of the S&P 500 index -- some 59 companies -- now weighs in at $5.2 trillion, or about 8% of the benchmark. The current healthcare weighting is a record low. The largest healthcare stock, Eli Lilly, has a market value of about $900 billion.
The tech sector has a record-high market cap of over $23 trillion, a 37% weighting in the S&P 500, the largest percentage ever. Throw in Amazon, Alphabet and Meta Platforms, three companies associated with technology but not members of the S&P 500 tech index, and the total "tech" weighting is about 50%. Alphabet and Meta are in the communications sector and Amazon in the consumer discretionary group of the S&P 500. Much of Amazon's value is in its cloud-computing business, Amazon Web Services.
Tech continues to roll with the State Street Technology Select Sector SPDR ETF, which tracks the S&P 500 tech group, up another 1.5% Monday after hitting a new high earlier in the session. The ETF is up 24% this year and is driving the over S&P 500 index, which has gained 9%.
It's tempting to say investors should buy healthcare stocks now. The State Street Healthcare Select Sector SPDR ETF, which holds healthcare stocks in the index, is down 7% this year, hurt by big losses in such components as Abbott Laboratories and Intuitive Surgical.
The tech/healthcare performance spread is near the widest ever and so are the relative market values. Maybe it's time to rotate out of tech with so many stocks at or near record highs and into out-of-favor healthcare.
Write to Andrew Bary at andrew.bary@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 11, 2026 15:44 ET (19:44 GMT)
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