Big public companies in the U.S. aren’t particularly representative of American businesses at large. For much of the pandemic, that has been a blessing for the stock market. In the months ahead, it could be a curse.
A quick look through the companies in the S&P 500 shows that a lot of them are in the business of making and selling stuff. Out of the 500, 216 are classified as manufacturers or retailers. But Commerce Department data show that manufacturers and retailers account for only about one-sixth of private U.S. firms, and Labor Department data show they account for a little more than one-fifth of private-sector jobs.
Further, manufacturers and retailers accounted for about half of S&P 500 sales last year, according to FactSet estimates. But over the first three quarters of last year, Commerce Department figures show that the two…
