Technology ETFs seemed to have picked up where they left off after the recent pullback, leading market gains as traders put uncertainty into their rear view.
Among the best performing ETFs on Wednesday, the Invesco Dynamic Software ETF (NYSEArca: PSJ) increased 5.6%, Invesco DWA Technology Momentum Portfolio (NasdaqGM: PTF) advanced 5.5%, SPDR FactSet Innovative Technology ETF (NYSEArca: XITK) increased 4.0% and iShares North American Tech-Software ETF (NYSEArca: IGV) rose 4.0%. PSJ, XITK and IGV were all testing their long-term resistance at the 200-day simple moving average as well.
Meanwhile, the more broadly observed Technology Select Sector SPDR Fund (NYSEArca: XLK) rose 2.5% on Thursday and was also testing its long-term trend line.
“These stocks are the leaders of this bull market,” Jason Benowitz, senior portfolio manager at Roosevelt Investment Group Inc., told Bloomberg. “If we’re going to have a rally, they’re going to participate in it.”
U.S. Stocks Rally
U.S. stocks rallied with technology outperforming on Wednesday after the midterm elections revealed a divided congressional power and eased concerns over quick policy changes that could affect corporate America.