5 ETFs At The Forefront Of Tech Rebound

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After plunging for three consecutive weeks, the tech stocks staged a strong rebound with the ultra-popular tech ETF — Select Sector SPDR Technology ETF (XLK - Free Report) — jumping 3.4% on the Mar 9 trading session.

Investors rushed to the beaten-down stocks in the tech sector as an outsized surge in bond yields, which led to broad sector sell-off, cooled down. Tesla (TSLA - Free Report) jumped nearly 20%, paring much of its year-to-date loss after dropping over the past couple of weeks. Apple (AAPL - Free Report) rebounded earlier this week from the lowest level it hit in November. Other stocks like Roku (ROKU - Free Report) and Square (SQ - Free Report) rose by double-digit percentages each while Amazon.com (AMZN - Free Report) and Facebook (FB - Free Report) each added more than 3%.

Additionally, the outlook for the tech sector remains solid given the global digital shift even in the post-COVID world with the acceleration in e-commerce for everything, ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication, and 5G technology will continue to drive the sector higher.

Further, the Fed has pledged to maintain its accommodative stance and will continue to buy $120 billion in Treasury and mortgage-backed securities per month, allowing inflation to move in an average range that could rise above its 2% target without triggering a rate hike.

Moreover, technology has a solid Zacks Sector Rank, being in the top 44%, suggesting their outperformance in the coming months.

Given this, we have highlighted those ETFs that led the tech rebound on Mar 9. Investors seeking to benefit from the resurging tech sector could find them encouraging picks:

Amplify Transformational Data Sharing ETF (BLOK - Free Report) – Up 10.5%

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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