The addition of three new components on Monday — when Apple starts trading on a split-adjusted basis — likely won’t help matters.
That’s because Revved Dow Industrial has placed less emphasis on technology stocks, the engine behind the stock market’s rebound since March. Starting Monday, Tech will make up less than a quarter of the Dow’s weight for the S&P 500 by about 28%. Comprehensive indexes include Amazon.com Inc., Facebook Inc. and Google Parent Alphabet Inc. — all of which are in the Dow. .
With millions still homebound, technology stocks have been the clear winner during the coronavirus crisis. People are working from home, streaming movies and using technology in their everyday lives to connect with friends and family using social media. Those changes in behavior have led to large tech stocks among the few credible bets that most other businesses hold.
Howard Silverblatt, a senior index analyst at S&P Ds Jones Indis, said, “With the economy we have now because of Kovid-19 and there is a difference between companies or not, we can continue a significant change in the short term” .