Tech’s reign over US stock market to be tested in 2021

Investors are weighing how big to go on U.S. technology stocks in the coming year, as pricier valuations, regulatory risks and a revival of the market’s beaten-down names threaten to dim their allure.

A surge in technology and internet-related shares helped lift U.S. indexes to record highs this year. Gains in Apple , Amazon and Microsoft alone accounted for more than half of the S&P 500’s 16.6% total return as of Dec. 16, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

Tech took a back seat in recent weeks, as hopes of a vaccine-led economic recovery fueled a rally in energy, financials, small caps and other less-loved parts of the market.