The technology sector in May
Factors driving the sector
Major technology companies’ earnings growth supported the stock rally. Despite nervousness in the technology sector in March, the sector recovered in May. XLK has been reaching new highs and broke past its important resistance level of $70.60 after some consolidation in early May, signaling changes in the technology sector.
Rising technology stocks are strengthening the broader-market S&P 500. Major XLK holdings Alphabet (GOOGL), Facebook (FB), and Apple (AAPL) rose 8%, 11.5%, and 13.5%, respectively, in May. In the next part of this series, we’ll analyze the energy sector’s performance last month.