Tech Stocks On Upswing, S&P 500, Dow Reach Peak Highs

Published on: 21 Jun, 2017

Technology stocks pushed up US stock exchanges on June 19 after a choppy performance during the third week of June. The Standard and Poor 500 went up 0.8 percent to reach new peak highs. Technology stocks led the upsurge, rising 1.4 percent. The DJIA or Dow Jones Industrial Index went up by 140 points, breaking the closing and intraday records. The Dow crossed 21,391.97, its previous record set during the third week of June. The Nasdaq Composite also went up by a handsome 1.65 percent. Investors' feelings were verbalized by Anthony Conroy, President, Abel Noser, who said that technology stocks, after being sold for the next few days, has reversed its downwards trend and is now back in demand. It seemed that buying has increased since prices have become low. 

This positive sign is a vast change from the third week of June, when concerns over valuation plunged the tech sector by 0.8 percent. However, when seen from a longer term perspective, technology continues to be the best performer in 2017, rising about 17.2 percent.

All time highs were also clocked by large cap tech stocks like Alphabet (NASDAQ: GOOGL), the parent company of Google, Facebook (NASDAQ: FB)Netflix (NASDAQ: NFLX)Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). A number of CEOs of prominent tech companies, like Tim Cook of Apple and Jeff Bezos of Amazon, met with US President. The administration has aimed its guns on a number of spending cuts.

Some head honchos like Randy Frederick, Vice President of Charles Schwab were more circumspect. As per Schwab, who heads trading and derivatives in his company, he has no inkling of the source of optimism. He added that present day events are not sources of excess optimism and conversely, excess pessimism as well.

There was an uptick in the European stocks as well. These stocks went up convincingly after the political party led by Emmanuel Macron, the French President, won parliamentary majority. The French CAC rose almost one percent. There was a rise of 0.86 percent by European Stoxx 600 Index. The mood was voiced by  Jeremy Klein of FBN Securities. The chief marketing strategist said investors were relieved of Macron winning the majority. He said that Europe, which was even a few days ago were seen slipping into an economic abyss, is now gaining in strength. Wall Street paid attention to words said by Bill Dudley, the President of New York Fed, that bank inflation should go up as wages become higher with the labor market's continuing improvement.

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Danny Abramov

Email: Danny@financialbuzz.com

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