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U.S. Technology Stocks Reach New All-Time High

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Andrew R. Michaud

• November 14, 2023

U.S. technology stocks have achieved a remarkable milestone by surpassing their previous all-time high set in July. The Technology Select Sector SPDR Fund XLK, which tracks the S&P 500 Information Technology sector, has seen a recent increase of 1.8% in trading. This puts it on pace to finish at $181.47 per share, marking the highest closing level ever recorded for the fund. The previous record was set on July 18.

Tech stocks are experiencing a significant rally on Tuesday, with the S&P 500 index poised for its best day since January. This surge comes after an October inflation report revealed that price pressures are subsiding at a faster rate than anticipated.

The impressive performance of tech stocks follows a breakout that was highlighted last Thursday. Despite skeptics, tech stocks are defying bearish projections and indicating strength as the year approaches its end.

The tech sector has demonstrated substantial growth since the beginning of November, with an increase of 11.3%. Additionally, it has experienced a year-to-date growth of 48.8%, setting it on track for its strongest year since 2009 when it achieved a remarkable 59.9% growth, according to FactSet data.

Technology Stocks Lead in 2023

According to FactSet data, information technology (IT) stocks have proven to be the top-performing sector within the S&P 500 this year. Coming in a close second is the communications services sector. These two sectors owe their success largely to the dominance of the "Magnificent Seven," a group of mega-cap technology stocks. Notably, Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), and Apple Inc. (AAPL) are all members of the IT sector, while Meta Platforms Inc. (formerly Facebook) and Alphabet Inc. (parent company of Google) are included in communications services.

On the consumer side, Amazon.com Inc. (AMZN) and Tesla Inc. (TSLA) represent the consumer discretionary sector.

Fortunately, since the beginning of November, Nasdaq Composite COMP has experienced a rebound rally, pulling it out of correction territory only a month after entering it, as reported by Dow Jones Market Data.

A Look Ahead: Exiting Correction Territory

At present, the Nasdaq Composite is up by 2.2% in recent trade. If it closes at or above 13,855.1658, it will exit correction territory.