Tech Stocks Are Bouncing Back After a Week of Losses

Big gains in technology companies sent major USA stock indexes to more record high closes on Wall Street. Overall, the tech sector enjoyed its best daily advance in months, with the S&P 500's tech sector booking its best daily climb since Dec. 7, 2016, while a popular way to trade the sector, the Technology Select Sector SPDR ETF, jumped 1.5% for its best daily gain since December, led by shares of Micron Technology Inc., Advanced Micro Devices Inc., and NVIDIA Corp.

Retail stocks were battered on Friday after Amazon.com's $13.7 billion deal to buy upscale grocer Whole Foods.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.17 percent.

The S&P 500 bank subsector was up 1.3 per cent At 2:48 P.M. (1848 GMT), the Dow Jones Industrial Average was up 119.2 points, or 0.56 per cent, to 21,503.48, the S&P 500 had gained 16.44 points, or 0.68 per cent, to 2,449.59 and the Nasdaq Composite had added 74.33 points, or 1.21 per cent, to 6,226.08.

Health care (+1.1%) also was strong, highlighted by biotechs which were led by Biogen's 3.5% surge, along with financials (+1%) and consumer discretionary (+0.8%).

The Fed commentary last week had surprised investors who expected more caution after some weak US economic data.

Apple rose 2.5 percent, providing the biggest boost to the three major sectors.

To see why, just look at a chart of the S&P 500, and compare that to what you see on a chart of the tech sector ETF (XLK), or the Nasdaq 100 ETF (QQQ).

"(Technology) valuations are not cheap but it doesn't seem to be a deterrent for buyers", said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. Amazon rose as much as 2.9 percent to an all-time high of $1017.

Airline stocks also showed a notable move to the upside, driving the NYSE Arca Airline Index up by 1.8 percent.

The S&P 500 posted 49 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 99 new highs and 87 new lows.

  • Eleanor Harrison