Technology Stocks

Technology stocks include semiconductor, software, cloud services and internet-platform companies and have been driven in recent years largely by AI investment and expectations of earnings growth. While investors remain optimistic about the sector’s long-term prospects, concerns that valuations are approaching elevated levels, capital is leaving megacap stocks, and interest-rate expectations and geopolitical risks are rising have fueled volatility in U.S. and Asian equities. Given their heavy weighting in major indexes and sensitivity to rates and growth expectations, technology stocks’ fund flows and changes in corporate earnings merit continued attention.