Tech stocks dictate market moves

Business | 16 Sep 2020 8:38 am

Because US tech companies have grown so massive, their movements alone can dictate the stock market’s performance more than ever.

Tech stocks as a group account for nearly 28 percent of the S&P 500, and they are up by 3.1 percent this week after slumping by more than 4 percent in each of the prior two weeks.

Analysts expect more volatility for stocks in the months ahead as the market navigates uncertainty over the outcome of the election, pessimism that Democrats and Republicans in Washington will be able to reach a deal to send more aid to unemployed workers and an economy still struggling amid the pandemic.

Investors weighed a batch of mixed global economic data Tuesday.

Stocks in Europe and much of Asia ticked higher following reports showing retail sales in China were higher last month than a year earlier for the first such growth this year, after the pandemic pancaked the world’s second-largest economy. In Europe’s largest economy, a reading on German economic confidence rose more than expected.

In the United States, a report showed that industrial production also strengthened last month. But the growth wasn’t as strong as economists were expecting. Other reports showed that manufacturing in New York State is expanding more than economists expected, as are import and export prices.-AP

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