Tech Stocks Break Out: The Next Leg of the Bull Market
Source: Zacks ·
Technology stocks including Meta Platforms, Intel, ARM holdings and Micron Technology are pushing the market sharply higher today, following a summer full of concerning development. Is this the start of another major rally?
From the source
After consolidating for roughly four and a half months, the Nasdaq and broader technology sector are finally breaking out of their trading ranges. That breakout is especially notable given just how much bad news the market has absorbed since the summer. Investors have navigated the blowup of a major AI-focused hedge fund, a sharp correction across the semiconductor industry, growing concerns around the pace and potential disruption of AI development, renewed tensions in the Middle East, and a surge in interest rates toward multi-decade highs alongside a shift toward tighter monetary policy. And yet, the market has taken it largely in stride. Certain areas have come under significant pressure at different points, most notably semiconductors, which fell as much as 30% from their highs. But the major indexes have continued to digest each setback without suffering a broader breakdown. Instead, stocks spent the last several months trading in a choppy range just below all-time highs. Now,…