The Stocks of Technology which has been a leading sector for very long has once more lifted the markets to newer records.
With the help of this rally which saw a 1% intraday gain the important stock indices in the United States, the Dow Jones, the Nasdaq Composite and the S&P 500 had all seen their records broken.
Tech turned out to be the sector which had been performing best among the groupings of S&P 500. This had been led by the Western Digital and Micron Technology both of which saw higher levels of trade by 6.9% and 4.5 %. Micron saw its trading at a level which was a high for as many as 52 weeks and had been on course for the best day it has had in the previous two months.
Both the companies had surged on Monday in the wake of the upgrades from the Susquehanna International Group. The firm which is engaged in the equity research had given an upgrade to Western Digital on the ramping up of their expected 5G smartphone building cycle. This firm had further recommended Micron with it seeing a risk-reward that is attractive for this chipmaker.
Although the top analysts from Wall Street has warned that this sector has reached a level where it is too expensive and on Monday it had said that the sector is currently trading at a level which is 22 times its earnings which is the highest for this group in the last 15 years.
He said that given the valuations being elevated along with the expectations for the stocks that are high priced, there was a belief that the risk in tech is too high.