5 Top Tech Stocks Rallying Over 20% Amid Coronavirus Crisis

Wall Street has been extremely volatile over the last one and half months on account of the coronavirus pandemic. Almost all of the industries have been affected as the United States and the global economy is currently under either full or partial lockdown. Notably, enforcing the practice of social distancing has emerged as the best way to contain this deadly virus in the absence of any vaccine or line of treatment.

However, a closer look into the technology sector reveals that a few stocks from this sector have actually skyrocketed in the past month defying coronavirus-induced mayhem. Investment in those stocks with a favorable Zacks Rank will be a prudent decision at this juncture.

Technology Sector Suffers a Blow

In financial literature, technology sector is known as high growth aggressive sector. During a severe market downturn, growth stocks likely to suffer the most. Consequently, recent weakness of the technology stocks does not come as a surprise.

However, the situation was aggravated by the fact that almost all U.S. tech behemoths are highly dependent on China for their business. China plays the role of both the low-cost supplier as well as the largest market of high-tech products. With the coronavirus outbreak starting in China and then spreading across the world, it completely destroyed the global supply chain. Notably, China currently accounts for around 16% of the global economy.

Ray of Hope

Nevertheless, Wall Street has been exhibiting an overall northbound movement in the last three weeks. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — declined to their recent low level on Mar 23 after entering into the bear market territory.

However, in the past month, the S&P 500 gained 1.6% while the Technology Select Sector SPDR (XLK), one of the eleven broad sectors of the benchmark index, gained 3.7%, only second to the Materials Select Sector SPDR (XLB), which advanced 5.9%. Moreover, for the week ended Apr 9, the XLK rallied 10.5%, marking its best weekly performance since the week ended May 17, 2002.

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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 specific ...

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