Investors that bought the dip on technology stocks during the recent market pullback are reaping the benefits. As stocks rebounded to end the week and get back to near all-time highs, shares of artificial intelligence heavyweights like Nvidia and Microsoft are among the biggest winners. Stock in the chipmaker added 19% over the five-day stretch, while Microsoft climbed 3%.
Shares of iPhone maker Apple notched a 4% gain, respectively. Looking at the big picture, the the Technology Select Sector SPDR Fund (XLK) added more than 7% and notched its best week since November 2022. The exchange traded fund is now only less than 7% away from its all-time high.
XLK 5D mountain The The Technology Select Sector SPDR Fund (XLK) registered its best week in two years. This week has been a favorable one for investors hoping for reassurance that the economy is on stable footing, and largely saw stocks erase their gains from the sell-off to start August. The S & P 500 earned about a 4% gain.
The S & P 500 is now less than 2% away from its July record-high. But the revival of technology stocks should come as no surprise as the fundamental tailwind of AI hasn't materially changed in recent months despite some companies drawing investor ire because of rising capital expenditures to fund AI projects, according to Deepwater Asset Management managing director Gene Munster. "Nothing has changed in the underlying AI trade, [but] I'm surprised that people came back as fast as they did," Munster told CN.