Will stocks continue their rise?

Technology’s earnings have been trending up. Historically, that has been a good sign for the sector and for earnings in the broader market.

The stock market has posted impressive gains in 2023 and early 2024, driven mostly by a rally in large-cap technology stocks. Many investors now worry that the tech sector may be overvalued and the rally could be played out.

Denise Chisholm, Director of Quantitative Market Strategy at Fidelity Investments, is not particularly worried. In the past, when technology generated the kind of strong fundamentals it has recently, the sector tended to produce further gains, and the overall market’s earnings typically grew.

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