The largest technology companies—Apple, Amazon, Alphabet and the like—have helped U.S. stocks notch big gains this year.
The catch? They’ve also made the market look more expensive.
Megacap tech stocks trade at about 30 times their expected earnings, according to Goldman Sachs. In turn, that has boosted the valuation of the broader market to about 19 times expected earnings. (That’s above its long-term average.)