Spreadex Market Update
S&P tech close to $5 trillion
The tech sector of the S&P index looks set to hit the $5 trillion mark if its 16% growth since the start of the year is to be kept up.
The sub index is dominated by Apple and the iPhone maker is chasing a similar milestone of their own. They are looking to become the first publically traded company to reach a market capitalisation of $1 trillion, currently standing tall at $774 billion. This represents an increase of a whopping 27% in 2017 and if this pace was to remain then the tech giant would reach its goal by October.
It seems that reaching these milestones is more important than actual earnings as far as investors are concerned. Indeed, the technology index is trading at 17.4 times expected earnings which is just off highs not seen since 2008.
Apple did edge down slightly yesterday after it reported a drop in iPhone sales in its Quarterly results, however, this did not stop at least four analysts from raising their share price target for the company.
One such analyst is Kim Forrest, a senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. She said "Investors see the big numbers, the hoopla surrounding hitting one of these arbitrary levels. Hitting those milestones often attracts more investors.”
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