Stocks Advance In February – Domestic Equity Overview

All eleven sectors of the S&P 500 Index posted positive results in February, with technology, financial, and healthcare making up the largest sectors of the index. The Dow Jones Industrial Index and the Nasdaq also posted positive gains in February.

The technology sector now accounts for roughly 30% of the S&P 500 Index, a level not seen since the early 2000s. This means that recent gains in the tech sector have elevated valuations thus making up a larger proportion of the index. Some analysts view this dynamic as a disparity and imbalance in the equity markets.

The average price of an individual stock in the S&P 500 is now $204.28, with some 73% of them (or 281 stocks) selling for more than $100 and 9 trading for more than $1,000 as of the end of February. Compared with 40 years ago, when the average price was $39.06 and approximately 4%, or 9 stocks, traded for more than $100, and with no stocks were over $1,000.

Sources: S&P, Reuters, Bloomberg

Disclaimer: The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products, or investment advisory services. All information, views, opinions, and estimates are subject to change or correction without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. Please consult your advisor about what is best for you.