On Monday, April 6, 2020, U.S. A sign of thanks to healthcare workers at the Nasdaq Marketsite in the Times Square neighborhood of New York.
Jinnah Moon | Bloomberg | Getty Images
According to Bank of America Global Research, in recent years U.S. The dominance of large tech stocks has pushed the region to another milestone, as it is now more valuable than the entire European stock market.
The pay firm said in a note that U.S. The tech sector has a market cap of more than ૧ 1.1 trillion in Europe, which now stands at $ 9.9 trillion, including the UK and Switzerland. For reference, the pay firm said that in 2007, Europe overtook the U.S. Technology was four times the size of stocks.
With the European continent pulling tech ahead as the U.S. market becomes more concentrated in megacap tech stocks, some market strategists worry. Biggest Pal, Micro .ft, Alphabet, Amazon and Facebook – the five largest tech stocks – accounted for 17.5% of the S&P 500 in January, and the number has risen to more than 20% since the turn of the year during the epidemic. Consumer tech Goliath Apple Pal itself is worth more than $ 2 trillion.
The part for Amazon, may be the most spectacular of the group. The company has been growing strongly in e-commerce since the 1990s, but its share has risen in the last decade due to the explosion of the cloud computing industry. Its stock price on Thursday was about 20 times higher than in August 2010.
Europe’s Tech Overtaking Europe U.S. And is also reflected in the overall performance of European markets. Since the beginning of 2010, the S&P 500 has risen nearly 200%, while the Euro Stocks 50 has risen 13.4% and the UK FTSE 100 just 11%.
To be sure, market cap only measures the equity value of companies and excludes debt. U.S. Tech stocks also have large international businesses and they don’t get all their value from the American economy.
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