US tech continues to outperform as investors look to earnings
Overcoming declines in early August, sector is month’s best performer, but still vulnerable
The rally in US tech sector stocks marches on, with forecasts suggesting the sector is set to continue delivering strong earnings growth, the Financial Times reports, citing FactSet. Nonetheless, the sector will likely get hit by bouts of profit-taking:
…the sector will remain vulnerable to money managers and other investors looking to crystallise gains and rotate into parts of the market that have fared less well.
“Tech will serve as one of the areas where folks will take profits because it has done so well,” said Michael Arone, chief investment strategist at State Street Global Advisors. “If we have some volatility, it would not surprise me if one of the first areas investors look to take profits will be tech.”