The tech-focused index NASDAQ and its related ETFs had been on a gaining streak, thanks to strong earnings from technology companies for the most recent quarter.
NASDAQ has been one of the leaders in the recovery. It was the first major index, for example, to cross its long-term trend line. Earnings from Apple (OTC:APPL) and Intel (NASDAQ:INTC) propelled the index even higher, leading to the index’s longest winning streak in 13 years. That streak came to an end today.
Amy Scott for Marketplace reports that the technology sector has had a strong second quarter, even though concerns about the broader economy still persist.
Technology systems are forced to constantly update their programs for efficiency, which causes businesses to follow. So even if companies cut employees, they will still place a premium on efficiency and up-to-date programs and software.
Will this last? Microsoft (NASDAQ:MSFT) may have clouded the sunny view. The company posted a 29% drop in quarterly profit and weak sales across all of its units. This is the first full year of losses ever posted by the software giant, explains Nick Wingfield for The Wall Street Journal.
- First Trust NASDAQ-100 Tech Index (NASDAQ:QTEC): up 50.2% year-to-date
- PowerShares QQQ (QQQQ): up 32.7% year-to-date