U.S. equities and stock exchange trade funds (ETFs) bounced back to record levels as the technology sector surged and pared some losses over the past week.

The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.9% higher Monday.

Leading the charge, technology company shares in the S&P 500 gained 1.4%, their largest one-day percentage rise since March, after coming off its second straight weekly decline, triggered by concerns over lofty valuations and traders engaging in the time-honored tradition of profit taking. The tech sector rose 19% this year and has led the market rally.

Nevertheless, tech shares remain about 2% below records achieved earlier in June.

“Some of it is folks taking a second-look at names that may have been unduly punished in the rotation out of tech that started about 10 days ago,” David Lefkowitz, senior equity strategist at UBS Wealth Management Americas, told Reuters. “There has been no change in the fundamentals for the tech sector. Earnings growth, earnings revisions and forward looking indicators remain healthy.”

The renewed focus on tech shares reflected traders’ risk-on sentiment as the week begins, with Apple (NasdaqGS: AAPL) among the better performers with a 3.0% increase Monday.

Investors were also closely watching Asian markets as MSCI Inc. decides on whether or not to include China A-shares into its global indices, notably its benchmark MSCI Emerging Markets Index.

The Federal Reserve is also likely to maintain its gradual monetary policy tightening as the labor market improves and inflation should rise alongside wages.

“Risk assets around the world are rallying again as the ‘carry party’ resumes,” Societe Generale SA strategist Kit Juckes wrote in a client note, according to Bloomberg. Fed Chair Janet Yellen “did nothing to persuade the market” to take its hawkish outlook for the path of interest rates seriously.

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