Is the S&P 500 No Longer the Economy? DataTrek's Nick Colas Weighs In

On Thursday, DataTrek co-founder Nick Colas said on CNBC's Closing Bell Overtime that tech and big tech make up about 50% of the S&P 500, making it a weaker proxy for the economy than ever. He spoke as the 10-year Treasury yield fell below 5% and tied a mid-September break in the decade-long link between oil and bond yields to expectations of less AI funding easing real rates, or inflation-adjusted yields. Colas said tech's share exceeds oil's roughly 28% in 1980 and tech's 30% to 32% in 2000. For clients worried about concentration, DataTrek points to the equal-weight S&P 500, where each company has the same weight; the Invesco S&P 500 Equal Weight ETF holds about 16% tech, he said.