Markets
The Dominance of U.S. Companies in Global Markets
U.S. Companies Dominate Global Markets
Are global indexes as “global” as you think they are?
With the aim of tracking market performance around the world, these indexes incorporate securities from various regions. However, while the number of securities may be relatively well diversified across countries, a dollar perspective tells a different story. When market capitalization is taken into account, country weightings may become much more unbalanced.
Today’s visualization is based on a concept by S&P Dow Jones Indices that shows the percentage of U.S.-based companies in global sectors and industries as of December 31, 2019. The calculations reflect the market capitalization of companies in the S&P Global Broad Market Index (BMI), an index that tracks over 11,000 stocks across 50 developed and emerging economies.
Percentage of U.S. Companies by Sector
U.S-based companies—those that maintain their primary business affairs in the U.S.—are a major component of many global sectors and industries.
Here’s how it breaks down:
Sector | % of U.S.-based Companies | Most U.S.-heavy Subsector |
---|---|---|
Information technology | 73% | Software (86%) |
Health care | 65% | Health care providers (82%) |
Utilities | 53% | Electric utilities (57%) |
Real estate | 51% | Equity REITs (69%) |
Consumer discretionary | 49% | Specialty retail (73%) |
Consumer staples | 46% | Household products (74%) |
Industrials | 46% | Aerospace & defense (73%) |
Energy | 44% | Energy - other (73%) |
Financials | 44% | Financials - other (73%) |
Materials | 30% | Chemicals (41%) |
U.S.-based companies make up a staggering 73% of the information technology (IT) sector. However, China may soon threaten this dominance. The Made in China 2025 plan highlights new-generation IT as a priority sector for the country.
The U.S. is still the world’s leader, but China is coming up very fast.
—Rebecca Fannin, Journalist & Author of Tech Titans of China
Healthcare is also heavily skewed towards U.S-based stocks, which make up 65% of the sector’s market capitalization. This weighting is perhaps not surprising given the success of many U.S. healthcare companies. In Fortune’s list of the 500 most profitable U.S. companies, 41 healthcare organizations made the cut.
The materials sector has the smallest weighting of U.S.-based stocks, but they still account for almost one-third of the overall market capitalization. Three American companies are in the sector’s top 10 holdings: Air Products & Chemicals, Ecolab, and Sherwin-Williams.
U.S. Equity Views in a Global Context
Given the high weighting of U.S. stocks in global sectors and industries, having a U.S. view is important. This refers to investors gaining a clear perspective on the risks and opportunities that exist in the country. Investors can consider the trends influencing American companies in order to help explain stock performance.
U.S. stock dominance also impacts geographic diversification. While it helps non-U.S. investors overcome their home bias, American investors may want to consider targeting specific international markets for well-rounded exposure.
Markets
3 Reasons Why AI Enthusiasm Differs from the Dot-Com Bubble
Valuations are much lower than they were during the dot-com bubble, but what else sets the current AI enthusiasm apart?

3 Reasons Why AI Enthusiasm Differs from the Dot-Com Bubble
Artificial intelligence, like the internet during the dot-com bubble, is getting a lot of attention these days. In the second quarter of 2023, 177 S&P 500 companies mentioned “AI” during their earnings call, nearly triple the five-year average.
Not only that, companies that mentioned “AI” saw their stock price rise 13.3% from December 2022 to September 2023, compared to 1.5% for those that didn’t.
In this graphic from New York Life Investments, we look at current market conditions to find out if AI could be the next dot-com bubble.
Comparing the Dot-Com Bubble to Today
In the late 1990s, frenzied optimism for internet-related stocks led to a rapid rise in valuations and an eventual market crash in the early 2000s. By the time the market hit rock bottom, the tech-heavy Nasdaq 100 Index had dropped 82% from its peak.
The growing enthusiasm for AI has some concerned that it could be the next dot-com bubble. But here are three reasons that the current environment is different.
1. Valuations Are Lower
Stock valuations are much lower than they were at the peak of the dot-com bubble. For example, the forward price-to-earnings ratio of the Nasdaq 100 is significantly lower than it was in 2000.
Date | Forward P/E Ratio |
---|---|
March 2000 | 60.1x |
November 2023 | 26.4x |
Lower valuations are an indication that investors are putting more emphasis on earnings and stocks are less at risk of being overvalued.
2. Investors Are More Hesitant
During the dot-com bubble, flows to equity funds increased by 76% from 1999 to 2000.
Year | Combined ETF and Mutual Fund Flows to Equity Funds |
---|---|
1997 | $231B |
1998 | $163B |
1999 | $200B |
2000 | $352B |
2001 | $63B |
2002 | $14B |
Source: Investment Company Institute
In contrast, equity fund flows have been negative in 2022 and 2023.
Year | Combined ETF and Mutual Fund Flows to Equity Funds |
---|---|
2021 | $295B |
2022 | -$54B |
2023* | -$137B |
Source: Investment Company Institute
*2023 data is from January to September.
Based on fund flows, investors appear hesitant of stocks, rather than overly exuberant.
3. Companies Are More Established
Leading up to the internet bubble, the number of technology IPOs increased substantially.
Year | Number of Technology IPOs | Median Age |
---|---|---|
1997 | 174 | 8 |
1998 | 113 | 7 |
1999 | 370 | 4 |
2000 | 261 | 5 |
2001 | 24 | 9 |
2002 | 20 | 9 |
Many of these companies were relatively new and, at the peak of the bubble in 2000, only 14% of them were profitable.
In recent years, there have been far fewer tech IPOs as companies wait for more positive market conditions. And those that have gone public, the median age is much higher.
Year | Number of Technology IPOs | Median Age |
---|---|---|
2020 | 48 | 12 |
2021 | 126 | 12 |
2022 | 6 | 15 |
Ultimately, many of the companies benefitting from AI are established companies that are already publicly traded. New, unproven companies are much less common in public markets.
Navigating Modern Tech Amid Dot-Com Bubble Worries
Valuations, equity flows, and the shortage of tech IPOs all suggest that AI isn’t shaping up to be the next dot-com bubble.
However, risk is still present in the market. For instance, only 33% of tech companies that went public in 2022 were profitable. Investors can help manage their risk by keeping a diversified portfolio rather than choosing individual stocks.

Explore more insights from New York Life Investments.

-
Markets2 days ago
Recession Risk: Which Sectors are Least Vulnerable?
We show the sectors with the lowest exposure to recession risk—and the factors that drive their performance.
-
GDP3 days ago
Visualizing U.S. GDP by Industry in 2023
Services-producing industries account for the majority of U.S. GDP in 2023, followed by other private industries and the government.
-
Markets3 days ago
Charted: The Industries Where Asian Companies are the Strongest
We look at the share of Asian companies in the top 3,000 global firms—measured by market capitalization in 2020—broken down by industry.
-
Globalization1 week ago
The Top 50 Largest Importers in the World
The value of global imports hit $25.6 trillion in 2022. Here are the world’s largest import countries, and their share of the global total.
-
Markets1 week ago
Ranked: The Biggest Retailers in the U.S. by Revenue
From Best Buy to Costco: we list out the biggest retailers in the U.S., and how much they earned from their stores in 2022.
-
Markets1 week ago
Visualizing 30 Years of Imports from U.S. Trading Partners
Nearly 60% of U.S. imports came from just four trade entities in 2023. We rank the top U.S. trading partners and show their growth over time.
-
Education6 days ago
Ranked: America’s Best Universities
-
Technology1 week ago
Ranked: Largest Semiconductor Foundry Companies by Revenue
-
Misc1 week ago
Visualized: EV Market Share in the U.S.
-
Maps1 week ago
Interactive Map: The World as 1,000 People
-
Brands1 week ago
Ranked: Average Black Friday Discounts for Major Retailers
-
Brands1 week ago
Ranked: Fast Food Brands with the Most U.S. Locations
-
Markets1 week ago
Visualizing 30 Years of Imports from U.S. Trading Partners
-
Markets1 week ago
Ranked: The Biggest Retailers in the U.S. by Revenue