New York: The market capitalisation of US tech stocks has crossed $9 trillion and now the sector is worth more than the entire European stock market.
According to a research note by Bank of America, the European market was four times larger than US tech in 2007.
The momentum is now with US tech as the market cap is now more than all of Europe, which has much lesser big ticket tech stocks.
Bank of America Global Research said in a note that this is the first time the market cap of the U.S. tech sector at $9.1 trillion exceeds that of Europe, which including the U.K. and Switzerland is now at $8.9 trillion.
The US markets and indices have been lately dominated by FAANG and other tech stocks which have witnessed the maximum upward swing.
The five top tech stocks, Apple, Microsoft, Alphabet, Amazon and Facebook, accounted for 17.5 per cent of the S&P 500 in January, and the rotation of funds wealth into tech during the coronavirus pandemic has pushed that number well above 20 per cent. Consumer tech company Apple is worth more than $2 trillion out of the $ 9 trillion.
Tech stocks overtaking Europe is also reflected in the overall performance of US and European markets in the last decade. Since the beginning of 2010, the S&P 500 has gained nearly 200 per cent, while the Euro Stoxx 50 has risen 13.4 per cent and UK’s FTSE 100 has gained just under 11 per cent.
IANS