Chart of the Day - Thursday, July 17, 2025

🏆  Today's Chart of the Day was shared by Rob Anderson (@_rob_anderson). 
 

• The Technology sector closed at a fresh record high today on both an absolute and relative basis. It was already the largest sector of the S&P 500, but it's become even more dominant recently. 
   
• Rob points out that Tech now represents over 33% of the S&P 500, marking its highest weighting since the dot-com bubble. The entire sector had a market capitalization of $4.4 trillion at the time, which is roughly equivalent to $NVDA's current market cap. 
   
• Health Care ($XLV), on the other hand, has continued to shed weight. It went from being the second-largest sector to the fifth-largest, representing just 9.2% of the index. 
   

The Takeaway: Tech’s weighting in the S&P 500 is the highest since the dot-com bubble, while Health Care’s weight has shrunk significantly. While concentration risk is rising, but this is a natural consequence of a cap-weighted index, where the strongest names become increasingly influential, and the weakest names become less impactful.