20 "Tech" Stocks Make Up Over 35% of the S&P 500. Here's What That Means for Your Portfolio.

The technology sector is driving the stock market to new highs with the S 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average both closing at record levels on Jan. 23.

The focus remains on the "Magnificent Seven" companies, a term coined by Bank of America analyst Michael Hartnett to describe the seven largest tech-focused companies in the S 500 -- Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla. Combined, they make up 28.8% of the index.

The Magnificent Seven dominate the U.S. stock market, but expand your view to the top 20 tech-focused companies, and they make up 35.8% of the S 500. They include the Magnificent Seven plus Broadcom, Adobe, Salesforce, Advanced Micro Devices, Netflix, Cisco, Intel, Oracle, Intuit, Qualcomm, ServiceNow, IBM, and Texas Instruments.