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Chart of the Day: Evolution of the Market Sectors

 Bar graph from 1800 - 2025 showing how the biggest sector in the U.S. market has changed over time.

Contents

Today’s Chart of the Day from Goldman Sachs takes a look at how the biggest sector in the U.S. stock market has changed over time, from 1800 to present.
 
You can see at one point, from 1800-1850, that Finance and Real Estate was the largest sector in the market at 90%. Then from 1850-1915, Transport was the largest sector, at approximately 50%. (This timeframe encompassed the formation of the oldest stock market index, called the Dow Jones Transportation Index, which was the precursor to the current Dow Jones Industrial Average, which was formed in 1896.)
 
From 1915 to the mid-1960's, the Energy and Materials sector led the market, a period that marked both World Wars and the rebuilding that followed. Finally, today the top sector is Information Technology and Communications, at 45%, in what is called the “Information Revolution.”
 
As you can see, over the years, the market has become much more diverse, so the biggest sector now makes up a smaller piece of the pie.