Halfway through 2019, tech leads on Wall Street 

    Technology stocks are Wall Street’s top performers as of the midpoint of 2019, with investors betting on lower interest rates, although Apple and chipmakers face turbulence related to the U.S.-China trade war, Reuters reports. 

    The S&P 500 information technology index has surged 9% in June, its strongest month in three years. That rally, and the S&P 500’s SPX record high on June 21, reflect investors’ increased appetite for risk as they become more confident the Federal Reserve will cut interest rates to support a slowing economy.

    It also shows that Wall Street is mostly confident that U.S. President Donald Trump, who has shown a dislike for stock market downswings, will ultimately resolve his trade conflict with China.

    Looking for evidence of progress on the trade front, investors will closely watch a planned meeting this weekend between Trump and China President Xi Jinping at the upcoming Group of 20 summit in Japan.

    “The risk to the downside is the greatest. If trade talks break down then we could head lower, probably a lot further, and the tech sector could be a leader to the downside,” says Randy Frederick, Vice President of Trading & Derivatives at Charles Schwab.

    Other investors say their optimism about the tech stocks is grounded in expectations that the sector’s earnings growth will outperform the rest of the economy over the next several years. Read the full story. 

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