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.
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.”