Technology stocks are often known for their volatile nature. But over the last few weeks, the unpredictability in tech stocks has pushed the market’s overall returns. This was true this past week.
Gains and losses in some of the biggest names in tech caused the overall major indexes to ebb and flow. Traders have honed in on tech shares after questions about growth and the sector’s massive returns over the last few years have made them easy targets.
As the last trading week of the month, data this week came in hot and heavy. Much of it supported the notion that growth was happening, yet not as strong as before. This helped with the overall theme of volatility for the week and the market’s choppy waves.
While official earnings season is still a few weeks away, several bellwethers that run on a slightly different quarterly schedule have started to report. Profits have continued to rise, but cautious optimism remains. Again, that helped with the week’s ups and downs.
Overall, the summer’s typical pattern of bumpiness continued this week.
Check out last week’s Market Wrap here.
On Monday, stocks snapped a four-day losing streak as investors bid up shares of defensive names in the wake of more technology stock selling. Despite the Fed’s recent increases in interest rates, dividend stocks and sectors like utilities have proven to be safe havens for investors worried about growth. Investors were also concerned that the Fed would have to pause on its interest-rate-hike strategy given recently reported weak data. But the increases in utilities and other safe-haven sectors were enough to boost stocks on the day.