Tech stocks reverse declines as CEOs meet with Trump
Tech stocks have stopped the bleeding as their CEOs went to meet with President Trump on Monday.
After a two-week decline in share prices, tech stocks were rallying in early trading Monday.
Apple, Adobe, Alphabet, Amazon, Microsoft, and Oracle executives are visiting the White House on Monday, and those companies' stocks were all up about 1%. The S&P 500 Information Technology sector was up 1.36%.
The tech executives are set to meet with Trump to discuss ways to limit waste and improve the US government's use of technology. The executives are also expected to bring up immigration reform, as many of their companies rely heavily on highly skilled workers from other countries.
The White House hopes it can trim around $1 trillion in costs over ten years by improving efficiencies with help from the tech sector.
The tech rally comes after two weeks of selloffs. Some investors view the companies as overvalued, and much of the selling in the last two weeks likely reflected the realignment of the market caps of tech companies with their underlying value.
Amazon is up 1.35% on Monday, following a rally on Friday after announcing a $13.7 billion acquisition of Whole Foods. Wall Street was generally bullish on the deal.
Even though the tech companies have seen recent declines, some investors don't see the companies cooling down anytime soon.
"We still largely believe in the [FANG stocks] growth, but the valuations are a bit less obvious. That said, we still believe the group should reward investors," Michael Graham of Canaccord Genuity wrote on Friday.
The tech sector has grown about 18% this year, and has largely propped up the rally seen in the broader stock market. Amazon is up 32.8%, Apple is up 25.64%, and Alphabet is up 21.13% this year.
