5 Surging Tech Stocks Amid Past Month's Volatility
Zacks Investment Research | Aug 20, 2019 09:08PM ET
Wall Street continues to reel under severe volatility from the beginning of August. The ongoing trade dispute between the United States and China is heading nowhere near conclusion. Furthermore, the prolonged trade tussle is simply jeopardizing global economic growth as investors are highly concerned about an impending recession.
Wall Street lost a good chunk of value, which it gained through the bull run in the first four months of this year, recorded as the best start in 30 years. The technology and industrials sectors were the predominant losers as these are highly trade sensitive. However, a few tech stocks have gained in the past month despite the stock market mayhem.
Tech Sector Fuels Market Rally in 2019
Despite witnessing extreme volatility, Wall Street is very much in positive territory so far in 2019. The rally was primarily boosted by strong performance of the technology stocks. Year to date, the broad-market S&P 500 Index climbed 15.7% while the Technology Select Sector SPDR (XLK), one of the eleven broad sectors of the benchmark index, jumped 27.6%. The tech-heavy Nasdaq Composite soared 19.8%.
In the last three months also, the S&P 500 gained 2.1% while the XLK climbed 6.8%. However, in the last one month, the XLK declined 2% while the S&P 500 Index dropped 2.6%.
Uncertainty Looms Large
Markets are uncertain about when the U.S.-China trade tension will be resolved or if at all it will be. President Donald Trump added to the prevailing ambiguity when he said that the U.S. government is in no hurry to seal a trade deal with China although high-level delegations will continue between the two countries.
If negotiations continue, there is no timeline specified on when the parties should reach an agreement. However, a consensus will certainly bode well for both economies. On the other hand, if no progress is made at all and a full-fledged trade war rages, then in addition of these two countries, the global economy will also see a slowdown.
5 Tech Stocks Moving Higher
The recent concerns about a U.S.-China trade deal and consequently global economic slowdown have not stalled growth of all technology stocks. We have been able to narrow down our search to five tech stocks, which have moved higher in the past month and still have upside left. All five stocks currently sport a Zacks Rank #1 (Strong Buy). You can see Original post
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