Assessing the relative risks from big tech to broad equity indices

US “big tech” hasn’t been spared in 2022’s stock market rout, which has gathered quite a lot more momentum today. Its prior outperformance of the rest of the NASDAQ 100 and S&P 500 was, however, mainly driven by earnings rather than valuations. So, there is arguably little reason to think that big tech will become a disproportionate drag on these indices if sentiment continues to sour.

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