Big Tech Stocks Are Soaring“”Here’s Why That Could That Spell Trouble For The Market

Big Tech Stocks Are Soaring“”Here’s Why That Could That Spell Trouble For The Market

TOPLINE



Despite growing concerns about a record number of new U.S. coronavirus cases, the stock market has largely held steady thanks to surging shares of big tech companies“”though  that's resulting in a very imbalanced market, experts warn.









The FAANG stocks - Facebook, Amazon, Apple, Netflix and Google-parent Alphabet.



Forbes



KEY FACTS







Even as the United States hit a record number of new coronavirus cases this week, the Nasdaq Composite index rose to several new record highs as big tech stocks continued to outperform the broader market.







"The infatuation with super-cap tech is a huge source of support“ for the market right now, with these "index-dominating“ stocks going "parabolic“ as investors pour money into them, says Adam Crisafulli, founder of Vital Knowledge.







Shares of big tech companies such as Amazon, Microsoft, Apple, Netflix and Google-parent Alphabet have all led the market higher in recent weeks thanks to the fact they've been doing relatively well amid the coronavirus pandemic, with earnings holding up much better than most other industries.







Beyond sporting "ultra-solid balance sheets,“ super-cap tech companies have also been able to more quickly adapt to the pandemic by