The Technology sector rallies 28% year-to-date, outpacing broader markets, even as AI spending concerns weigh on megacap stocks.
The Technology sector is set for its strongest first-half performance since 2023, rising 28% year-to-date. Gains accelerated after a March 30 market low, with a 37% surge driven by AI infrastructure investments and a broader market rebound.
The S&P 500 is on track for its best quarter in six years, though the ‘Magnificent Seven’ megacap stocks lag. Companies planning over $650 billion in AI spending face skepticism over returns, with Microsoft down 22% this year.
Investors question whether AI infrastructure investments will deliver, as sector gains broaden beyond the largest tech names.