Technology stocks have held up better than average in the highly volatile equity markets of the past few weeks. In the three months ended October 7, the Dow Jones U.S. Technology Sector Index Fund (IYW) is down 8%.
Tech investors anxiously await Apple’s quarterly earnings as a sign of whether technology stocks will continue to outperform the broader market. Apple (AAPL) has more than doubled in 2009, far outpacing the 24% gain for the SPDR S&P 500 (SPY).
US equities rallied 7% last week on stronger than expected earnings reports. The largest broad market ETF, the SPDR S&P 500 (SPY), finished last week at $94.13, up $6.17 or 7% from the prior week’s close.
As the Q2 earnings season unfolds, investors will be watching the Technology sector closely. After outperforming the broader market for most of the year (see Technology Pulls Ahead from early April) technology stocks will now need to deliver on anticipated improvement in earnings performance.