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Tech Stocks Are Largely Driving Wall Street’s Rally

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As the U.S. stock market continues to reach new heights, it is clear that tech stocks are playing a large role in this financial rally. Once again, Silicon Valley is giving back to the nation in a major way. Far from representing a bubble, it seems that this tech-based stock rally is based on fundamental economic trends. Most people could have predicted that Alphabet and Microsoft would play big roles in the burgeoning modern stock market. As the parent company of Google, Alphabet has long appealed to the sensibilities of the average investor. Microsoft has also proven to be a very resilient stock over the years.

For years now, naysayers have claimed that Amazon stock was overvalued and due for a fall. Some commentators have gleefully celebrated each bit of negative news regarding this e-commerce company. If recent developments are any guide, Amazon’s critics have been far too quick to consign Amazon to the dustbin of history. Recently, the value of Amazon’s stock leaped an additional 13 percent. This represented the most dramatic move for the company’s stock in well over two years. Although Amazon isn’t yet an enormously profitable company, it seems clear that Amazon has what it takes to survive for the long run. Barring any unforeseen development like governmental antitrust action, Amazon should continue changing the retail industry in significant ways.

Intel is another outstanding technology company that is helping ensure the unprecedented health of the U.S. stock market. Having produced the technology that has driven the incredible growth of the global technology sector, Intel is continuing to leverage its stock into new positions of strength. According to financial expert Brad Sorensen, the development of cloud computing can partly explain the continual growth of U.S tech stocks. Even Facebook and Apple have posted small stock value gains, despite the fact that their massive market shares do not always translate into stock price gains. It is fortunate that tech companies are doing so strongly. This has helped to counteract weakness on the part of several major retailers and pharmaceutical firms. Recently, the U.S. government announced that the American economy grew more than three percent over the summer of 2017. This growth happened in spite of the financial difficulties caused by the two massive hurricanes that rocked the nation in the same time frame.

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