Ride The Relentless Big Tech Rally With These ETFs

The technology sector continues being strong amid the coronavirus crisis. The strength in the big tech stocks also resulted in the 1% rally in the Nasdaq Composite, hitting a new record close at 11,264.95 on Aug 20. The tech-heavy index touched its 19th record closing high since early June and its 35th record close so far this year (according to a Reuters’ article). Some strength in other major indices, the Dow Jones Industrial Average and S&P 500, was also observed on the same day as the trading session ended on a positive note.

Notably, Facebook (FB) gained 2.4%, Apple (AAPL) appreciated 2.2%, Amazon (AMZN) rose 1% and Microsoft (MSFT) was up 2.3% on Aug 20, supporting Nasdaq Composite’s record close. Netflix (NFLX) and Alphabet (GOOGL) also supported the tech rally by gaining at least 2% on the same day. Intel’s announcement of an accelerated buyback plan supported its 1.7% gain on the same trading day.

The strength in the technology stocks has also helped overcome the blues from Fed’s minutes from its July 28-29 meeting. The officials at the meeting were visibly worried about the pandemic that poses severe threats to the economic outlook over the medium term, per a CNBC article. They are also concerned about the adverse impact of the coronavirus outbreak on the economic activities, employment and inflations levels in the near term.

Further, the big tech rally optimism has outweighed the disappointing unemployment data. Per the Labor Department, the U.S. weekly jobless claims came in at 1.106 million for the week ending Aug 15 in comparison to the Dow Jones estimate of 923,000 (according to a CNBC article). The jobless claims have once again crossed the 1 million mark, after sliding below that level for the week ending Aug 8 for the first time since March, per a CNBC article.

Major technology companies’ resilience to the coronavirus crisis is heavily supporting the market momentum. In this regard, Facebook has surged more than 30% year to date, and Amazon (AMZN) has soared more than 78%, with Netflix (NFLX) appreciating more than 50% during the same period. Apple (AAPL) has surged more than 60%, so far in the year.

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