Market Momentum Shifts Gears
The past nine days have seen mega-cap indices steadily climb, defying gravity with their calm and collected price action. This serene atmosphere is often a bullish indicator, but recent days have brought a notable change in pace. The Nasdaq and Nasdaq 100 have suddenly steepened their slopes, signaling a potential shift in market dynamics.
Technology Stocks Take Center Stage
Technology stocks have regained their footing, breaking out to new all-time highs since July 10. The small- and mid-caps, on the other hand, have taken a step back, allowing the tech giants to bask in the spotlight. Software stocks, in particular, have been on a tear, leading the IT sector and leaving other industries in their wake.
Software Stocks Soar to New Heights
The iShares Expanded Tech-Software ETF has experienced a remarkable surge, jumping almost 32% since tracing out a secondary low on September 6. This impressive rally has been accompanied by strong volume, indicating significant institutional investment. What’s more, the largest software company, Microsoft, has only seen a modest 7% increase over the past three months, making the industry’s overall performance all the more remarkable.
Industry Leaders Make Their Move
Oracle has seen a substantial 34% increase, while Salesforce has skyrocketed an astonishing 48%. ServiceNow has tacked on 35%, and Palantir has exploded by a staggering 127%. Other leaders, such as Shopify, have also made significant gains, with the company’s stock rising 6%.
A New Era of Market Momentum
As the market continues to evolve, it’s clear that technology stocks are back in favor. With software leading the charge, investors would do well to keep a close eye on this sector. As the landscape shifts, it’s essential to stay informed and adapt to the changing tides of the market.
Leave a Reply