Market Extra: Technology stocks hit record high as Nasdaq looks to exit correction territory

U.S. technology stocks hit an all-time high Tuesday, surpassing an earlier record from July.

The Technology Select Sector SPDR Fund
which tracks the S&P 500 Information Technology sector, was up 1.8% in recent trade, leaving it on track to finish at $181.47 a share, what would be its highest closing level ever recorded, according to Dow Jones Market Data. It’s most recent record close arrived on July 18, according to Dow Jones data.

Stocks are rallying on Tuesday, with the S&P 500 index on track for its best day since January, following an October inflation report that showed price pressures ebbing more quickly than expected.

See: Inflation flat in October thanks to cheaper gas, CPI shows. U.S. prices not rising as fast.

The latest leg higher in tech stocks follows a break out highlighted by MarketWatch on Thursday.

See: Tech stocks are breaking out, defying bears and signaling year-end strength: analyst

The tech sector has gained 11.3% since the start of November. It’s also up 48.8% year-to-date, leaving it on track for its best year since 2009, when it gained 59.9%, according to FactSet data.

So far in 2023, information technology stocks have been the best performing S&P 500 sector, according to FactSet data, followed closely by communications services. Both sectors are heavily weighted toward members of the “Magnificent Seven” group of megacap technology stocks. Nvidia Corp.
Microsoft Corp.
and Apple Inc.
three members of the group, are all members of the information technology sector, while Facebook parent Meta Platforms Inc.
and Google parent Alphabet Inc.

are included in the communication services sector. Inc.
and Tesla Inc.
meanwhile, are part of the consumer discretionary sector.

A rebound rally since the start of November is helping to push the Nasdaq Composite
the tech-heavy index that tacks Nasdaq-listed stocks, out of correction territory less than one month after entering it, Dow Jones Market Data show.

See: The Nasdaq just fell into a correction. Now what?

The Nasdaq Composite was up 2.2% in recent trade. It will exit correction territory if it closes at or above 13,855.1658.

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