After Monday’s sharp drop, the S&P 500 technology sector is down 6.7% since the overall S&P 500 closed at a record on Sept. 2, compared with a 5.2% decline for the broader index over that time. WEIGHTING IN THE S&P 500The tech sector by itself holds a 27.7% weighting in the S&P 500, more than twice that of the number two sector, healthcare. VALUATIONSThe technology sector trades at 25.8 times forward 12-month earnings estimates, compared with 20.7 times for the overall S&P 500, according to Refinitiv Datastream. EARNINGSThe tech sector’s earnings held up much better than those of the broader market last year as the coronavirus pandemic wreaked widespread economic havoc. As the world emerges from lockdowns this year, tech’s profit growth has not been quite as strong as S&P 500 companies overall.

Source: MetroXpress October 05, 2021 05:03 UTC