more-inTechnology shares surrendered their leadership in the U.S. stock market over the past month, but the fast-growing group may soon resume its outperformance and manoeuvre back into pole position. “I think of (tech’s recent swoon) as profit-taking rather than driven by change in the fundamental factors,” said John Praveen, managing director of Prudential International Investments Advisers. Given tech’s outsized position — 22% of the market value of the S&P 500 — the sector’s growth is critical to overall U.S. corporate profit gains. Tech’s second-quarter revenue growth is projected at 7.2%, faster than 4.6% for S&P 500 companies overall, according to Thomson Reuters I/B/E/S. Another factor in tech’s favor: The dollar’s 6.1% decline this year against a basket of major currencies.

Source: The Hindu July 08, 2017 18:22 UTC