Broad Buying and AI Spending Forecasts Lift Technology Shares

The Information Technology sector closed +2.5% on Monday, September 21, supported by wide participation as 84.9% of its stocks advanced. The Technology Select Sector SPDR Fund, an exchange-traded fund tracking the sector under ticker XLK, finished +2.8% at $194.84. Gains were balanced across the roster: the cap-weighted return matched the equal-weighted return of +2.5%, showing that mid-sized and smaller firms contributed as much as the mega-cap leaders. High-quality holdings anchored the group, with 53.5% of the fund's weight graded A or B by EasyAlpha, while individual momentum was led by sharp moves in Akamai Technologies Inc at +12.3% and Intel Corporation at +12.1%. The move unfolded as lower Treasury yields and falling crude prices eased valuation headwinds for tech shares, alongside new industry projections showing that worldwide artificial intelligence spending is expected to reach $2.67 trillion in 2026.

Across the broader equity market, 7 of the 11 sectors rose on the day, with technology pacing the advance. Software and chipmakers advanced as easing bond yields and retreating oil prices revived appetite for high-growth shares. Semiconductor enthusiasm was further lifted by Qualcomm, which surged after demonstrating an optical chip interconnect designed for artificial intelligence infrastructure. Hardware sentiment also found support as optimism over trade discussions helped lift major chipmakers. On the downside, HP Inc trailed the sector, closing -4.2%.

Over the past month, the fund stands +6.4%, building on a +42.3% move over the past six months. Despite that medium-term rebound, the sector remains -30.1% over the past twelve months, highlighting the extended recovery underway from earlier cyclical drawdowns.