Tech stocks, which have been the bedrock of the most recent bull market, are starting to rise again.
According to an analysis by Investor’s Business Daily of data from S&P Global Market Intelligence and MarketSmith, all five of the largest-cap tech and tech-related stocks in the S&P 500, including Apple, Amazon, and Meta Platforms, are anticipated to rise by at least 10 percent over the course of the following year.
In total, these five stocks make up almost 20 percent of the S&P 500. Even so, according to David Trainer, CEO of the research firm New Constructs, “Investors should be selective when buying equities inside the tech sector.”
The Technology Select Sector has increased by 12 percent in the last month alone. The rise in tech stocks is all the more significant. Technology stocks account for 28 percent of the S&P 500, more than any other sector. Consumer discretionary makes up only 11 percent of the index.
It’s also worth noting that technology’s influence on the S&P 500 extends beyond its industry. For instance, many people consider Amazon.com to be a technology stock, but it actually accounts for nearly a quarter of the consumer discretionary sector. In this context, Amazon stock has risen nearly 29 percent in a month.
Gains in mega-cap technology and technology-related firms are impressive. In July, shares of pure tech behemoths Apple and Microsoft are up 19.5 percent and 9.1 percent, respectively. Alphabet is up 5.6 percent in a month in communication services. Meanwhile, Meta Platforms (META) is the only mega-cap tech stock to have declined in July. And it’s only by 3 percent.