The S&P 500 technology sector has contributed to more than three quarters of the broader index’s gains, according to S&P Dow Jones Indices.
After surging 37% last year, technology remains a favorite among investors, despite data suggesting technology stocks are relatively expensive as they trade at elevated price-to-earnings compared to the broader S&P 500. Roughly a third of global fund managers say they are overweight tech in their portfolios, according to a recent Bank of America Merrill Lynch survey.
“When you have something that can really grow and innovate, there’s really no limit to the upside,” Thomas Plumb, president of Wisconsin Capital Management, told the WSJ.
For more information on the tech sector, visit our technology category.