Shares of technology companies rallied as traders continued to chase year-end momentum in the sector.
The sector also received a lift from reports that President Biden and Chinese leader Xi Jinping would meet next week for a summit that both powers say they want to keep their sprawling rivalry in check.
Disputes over trade in high-tech goods with military applications. One strategist said the rebound for mega-cap technology stocks reflects a new perception of their characteristics as it pertains to risk.
“The big mega techs, the ‘Magnificent Seven’…more and more over the last several years they are seen as companies that are going to provide ballast in a difficult market, a difficult economy,” said Quincy Krosby, chief global strategist at brokerage LPL Financial.
“They have rock-solid balance sheets, they generate cash, theya re that the forefront fo the most innovative technologies underpinned by strong move in generative artificial-intelligence and they are seen increasingly as a defensive move in a difficult market,” Krosby said.
Microsoft rose by more than 2% to new all-time highs and is now up by more than 53% for the year to date, adding more than $900 billion to its market capitalization in the space of ten months.
Even Apple, which has been plagued by concerns of a tepid iPhone launch and a backlash against its products in China, came within 5% of an all-time high. Restaurant-review Web site Yelp rose after it said profit rocketed more than sixfold in its latest quarter.
Write to Rob Curran at rob.curran@dowjones.com
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