Tech stocks rebound as S&P 500 approaches longest winning streak in decades

In the United States, a significant recovery in technology stocks has been observed after a severe downturn triggered by tariff concerns from President Donald Trump. Following a dramatic drop of over 12% in the S&P 500 index from April 2 to April 8, stocks began to gradually rebound starting April 9, when Trump eased his most aggressive trade policies. The S&P 500 is now approaching its longest winning streak since 2004, reflecting renewed investor confidence and optimism surrounding upcoming earnings reports from major tech firms. Key players in the recovery have included Microsoft and Meta Platforms, which reported strong earnings that spurred interest in AI technologies and buoyed their stock prices. The resurgence in tech stocks has not been limited to just Microsoft and Meta. Other companies, particularly those involved in artificial intelligence, have also enjoyed significant gains. Notably, the S&P has seen about 90% of its constituent companies rising during this recovery phase. The sentiments among investors seem to have shifted favorably towards tech, with funds such as the Technology Select Sector SPDR Fund regaining their pre-tariff levels. Institutional investors, who had retreated during the tumultuous April period, are beginning to reenter the market. However, it remains uncertain how long this renewed confidence will last, especially with key economic indicators, like a U.S. jobs report, set to be released soon. Despite the overall positive momentum, not all tech stocks are performing equally. Apple, for instance, recently reported a drop in its share prices due to its acknowledgment of the adverse impact tariffs have had on its profits. The company projected a significant profit hit, amounting to $900 million, directly linked to tariffs. This has highlighted the continued tension and repercussions of trade policies on major tech companies, contrasting with the buoyancy seen in firms like Microsoft and Meta. As earnings reports continue to flood the market, investors remain cautious yet hopeful that the tech sector can maintain its upward trajectory. The situation is emblematic of a broader shift within U.S. financial markets, where confidence is gradually returning after a tumultuous period dictated by geopolitical tensions and economic policy uncertainties. The swift recovery of the S&P, alongside significant gains from AI-focused companies like Palantir and Arista Networks, showcases a renewed focus on technology's potential amid an evolving global economic landscape. As the market waits for key economic indicators that could impact trader sentiment, the resilience displayed by the technology sector stands as a promising sign for investors navigating the complexities of today’s market environment.