Tech Stocks’ Latest Rally Could Have Legs. What History Shows.

If diversification is the key to long-term investing success, then tech stocks’ latest rebound offers hope that the sector’s 2023 rally hasn’t run out of steam yet.

However that winners’ circle began to expand as the year went on, a pattern that has reasserted itself after tech’s brief selloff in August. The sector’s latest rebound has been founded on broad-based gains, with a majority of tech stocks advancing from their August lows, rather than just a few heavyweights.

As the firm notes, more than two-thirds of tech stocks have advanced from their selloff in just 10 days. In the past five years, a sentiment reversal that fast has happened only twice before after the sector had gone more than six months without a similar thrust—a technical indicator of stock momentum. In October 2022 and February 2018, both of those signals preceded sustained gains, particularly over the following three- and six-month periods.

Of course, some investors might still feel nervous, given that tech is near-a multiyear high, and that the quick move up for the sector could herald a blow-off—a technical term for when a chart goes up sharply only to then fall into a similarly sharp decline.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morgan Stanley reveals the 'next big thing' in smartphone tech and picks global stocks to buyThe bank also shared its views on Apple launching a product including this smartphone technology.
Source: CNBC - 🏆 12. / 72 Read more »

Asian stocks rally on easing rate hike fears, China stimulus hopes By Investing.comAsian stocks rally on easing rate hike fears, China stimulus hopes
Source: Investingcom - 🏆 450. / 53 Read more »

China property stocks rally as better news challenges record media negativity.News articles about China recently hit their most negative on record amid concerns about the real estate sector and slowing overall economic growth.
Source: MarketWatch - 🏆 3. / 97 Read more »

Japanese stocks climb for sixth day as Hong Kong stocks gainStocks in the Asia-Pacific region mostly grew Monday, Sept. 4, Japanese shares climbing for the sixth day. The Hang Seng Index of Hong Kong companies added...
Source: MarketWatch - 🏆 3. / 97 Read more »

Japanese stocks climb for seventh day as Hong Kong stocks dropAsia-Pacific stocks mostly decreased Tuesday, Sept. 5, Japanese shares climbing for the seventh day. Hong Kong's Hang Seng Index fell 2.1% to 18,456.91,...
Source: MarketWatch - 🏆 3. / 97 Read more »

Airbnb, Tesla stocks rise, Manchester United, Softbank shares fall and other stocks on the moveAirbnb, Blackstone stocks rose after S&P 500 caretaker said it was adding them to the S&P 500 index.
Source: MarketWatch - 🏆 3. / 97 Read more »