Consumer sectors hit record low of 13% in S&P 500 market cap as tech dominance reshapes the index

The S&P 500 is slowly turning into a tech index wearing a trenchcoat. Consumer Discretionary and Consumer Staples, once pillars of the benchmark, now account for roughly 13.9% of total market capitalization, their lowest combined weight since the 1990s. That figure deserves some context. As of mid-2026, Consumer Discretionary sits at about 9.3% and Consumer Staples at approximately 4.6%, according to S&P Dow Jones Indices data from late June. Information Technology, by contrast, commands around 38% of the index all by itself. One sector is nearly three times the size of two others combined. A three-decade reshuffling The decline didn’t happen overnight. Consumer Staples alone weighed in at roughly 13% back in 2008. That’s roughly the same share that both consumer sectors now hold together. Tech, communication services, and consumer discretionary sectors collectively exceeded 58% of the S&P 500 at various points during 2026. Defensive sectors are experiencing a similar squeeze. Staples, healthcare, and utilities are collectively nearing an all-time low of about 15%. Why consumer stocks keep losing ground The math behind the shrinkage is straightforward. When tech stocks ...