Technology stocks are trending big-time as investors latch on to innovative companies racing ahead in a slow-growth world.
The tech-heavy Nasdaq is the best performing major US stock index this year, gaining 6.6% as the Standard & Poor’s 500 and the Dow Jones Industrial averages have wavered between small gains and losses.
The industry has re-established itself as the dominant sector in the US stock market and currently accounts for 20% of the value of the S&P 500 index. That is tech’s largest share since the dot-com bubble, and makes it the biggest sector in the market.
But the sector’s success isn’t universal. Some of the most recent earnings reports from big tech companies have highlighted both the good and the bad for the industry.