Tech Stocks Show Modest Move to The Downside

On Wednesday, Technology, which is the biggest sector in S&P 500, had its worst day since June and went down by as much as 2.6%. Big name such as Facebook, Netflix, Apple and the hottest stock of the year Nvidia all declined by more than 3.5%. Surprisingly, there is no fundamental reason for the decline. Some investors and analysts believe that it could be a rotation from popular “momentum.” However, the volatility is not a surprise given the sector has doubled the performance of the S&P 500 in 2017 and seeing decline is not an anomaly. Besides, the sector is driving S&P 500 to its fifth uninterrupted quarter of earnings growth. Google parent Alphabet went up by 31% in 2017 with 33% profit surge. Similarly, Microsoft Corp. reported revenue increase of 12% due to its growing cloud computing, while Intel Corp. also beat analysts’ expectations. The S&P 500 technology sector increased by 36% this year, jumping past the broader index’s 17% gain. That would mark tech’s best annual performance since 2009.

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