Market strategists: The market’s dependence on the semiconductor sector is deepening.

Golden Ten Data reported on May 13 that the strong performance of the semiconductor sector means the market is becoming increasingly dependent on this high-growth industry. As of Monday, the 19 semiconductor and semiconductor equipment stocks in the S&P 500 accounted for 18% of the index's total weight. According to Jones Trading's Chief Market Strategist O'Rourke, as of Monday, of the $5.1 trillion in new market capitalization added to the S&P 500 by 2026, gains from semiconductor and memory stocks accounted for 70%. Meanwhile, market observers have noted signs of weakness emerging beneath the market's surface. According to data from Bespoke Investment Group, although the S&P 500 reached a new all-time high earlier this week, just over half of its constituent stocks were trading above their 50-day moving average. O'Rourke stated that the semiconductor sector "currently has such a large weighting in the S&P 500 that any pullback or disappointing performance will pose a risk to the broader market."