Nick Colas says tech accounts for 50% of S&P 500, weakening its economic proxy status

DataTrek co-founder Nick Colas stated that tech and big tech now account for about 50% of the S&P 500, making the index a weaker proxy for the economy than ever before. Colas credited Moore’s law for this shift, noting tech's share now exceeds oil's 28% in 1980 and 30-32% in 2000. He advises clients to consider the equal-weight S&P 500, which holds about 16% tech, and noted the K-shaped economy persists, though withdrawn IPOs might thin the wealthy ranks.