On Monday, the information technology sector of the index showed tremendous competence in the stock exchange in New York, closing the rally by a record of 1,337.63, passing its preceding top results from last October by less than five points. This takes the index up by 0.41 percent, making this the eighth session that the S&P 500 was able to maintain its record high. This adds to the index’s technology sector to the line-up of sectors that were able to reclaim their record highs. Having achieved the same were the real estate and utilities sectors which were able to recover from the previous two weeks.

Investors' outlook regarding the segment’s circumstances lies heavily on the projections of the Federal Reserve’s interest rates. Around the end of September and early October of last year, issues about the Fed raising interest rates this year played an important part in bringing about a sell-off which dragged the sector from a record high and into a great fall that we experienced during the Christmas season.

In January, the Federal Reserve announced its promise of being forbearing when it comes to its interest rate strategy. This served as a chance for the broader market to recover and display future potential. The prior month, the US central bank released an announcement of fulfilling this promise and is no longer considering an interest rate hike this year. This news essentially sealed the deal for the information technology sector of the market which is expected to experience rapid growth in earnings by the time the economy catches up.

By: Cyril Latrice Cajanding