Wall Street is betting tech shares could shrug off any issues about AI capital expenditures and larger rates of interest and close out the yr sturdy.
Global technology equity funds have attracted about $195 billion in inflows over the last 12 months, the most of any main sector, according to new knowledge from Deutsche Bank (chart below). This is more than the next 9 sectors mixed.
Inflows into tech funds have doubled over the previous few months.
“Technology funds are dominating global investor demand,” strategists at The Kobeissi Letter said.
Can you blame the Street for still loving tech shares? The earnings engine for some of the largest names in the world continues to work time beyond regulation with no indicators of slowing down.
In mixture, second quarter earnings reported by the “Magnificent Seven” corporations exceeded estimates by 66.2%, in contrast to 26.5% for all S&P 500 corporations, according to knowledge from FactSet.
The Magnificent Seven contains Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).
Earnings growth for the Magnificent Seven tallied 118.5% for the second quarter, which is the highest earnings growth charge reported by these seven corporations going back to at least the fourth quarter of 2020.
By comparability, the blended earnings growth charge for the other 493 S&P 500 corporations for the second quarter clocked in at 31.8%.
The high 5 contributors to earnings growth for the S&P 500 for the second quarter (in order) were Alphabet, Amazon, Micron, Nvidia, and Chevron.
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the ‘Power Players With Brian Sozzi’ podcast and a member of Yahoo Finance’s editorial management workforce. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on tales? Email brian.sozzi@yahoofinance.com.
Read the newest financial and business information from Yahoo Finance