The combined market capitalization of consumer discretionary and consumer staples sectors in the S&P 500 has dropped to approximately 13.9%, marking the lowest level since the 1990s. Data from S&P Dow Jones Indices as of late June 2026 shows consumer discretionary at 9.3% and staples at 4.6%.
In contrast, the information technology sector now accounts for nearly 38% of the benchmark index. This dominance means the tech sector is currently nearly three times the size of both consumer sectors combined. In 2008, consumer staples alone represented about 13% of the index.
During 2026, the combined weight of tech, communication services, and consumer discretionary sectors exceeded 58% of the S&P 500. Defensive sectors, including staples, healthcare, and utilities, are approaching an all-time low of approximately 15% of the index.
The shift in index composition is driven by the rapid appreciation of tech stocks compared to the stagnant or lagging performance of consumer stocks. This trend creates new allocation challenges for portfolio managers, as passive index funds now reflect a significantly higher concentration in technology.
