This article was originally published on ETFTrends.com.
Semiconductor stocks and related exchange traded funds were among the better performing areas of the market Thursday as robust earnings results helped the sector rally.
Fueling the rally in semiconductors, robust earnings reports from three Apple suppliers, NXP Semiconductors (NXPI), Dialog Semiconductor (DLGS) and Qorvo Inc (QRVO), fueled investor optimism over the beleaguered sector, Reuters reports.
The technology sector largely led the stock market’s decade-long bull run, and it also experienced some of the worst selling in October. The Philadelphia Semiconductor index’s 8% pullback was its worst monthly loss since March 2012.
“People are moving back into technology again, which shows that risk appetite picking up and you see people moving back into high-growth names as well,” Jeff Carbone, managing partner at Cornerstone Wealth, told Reuters.
NXP Semiconductors beat expectations for the third quarter and reassured investors on its forward guidance.
Qorvo beat expectations but warned on China demand for its year-end outlook.
"Our outlook calls for a strong December quarter with higher volumes and ongoing cost control, and it factors in a more measured view on demand from China-based handset manufacturers,” according to Qorvo.
Further bolstering the tech outlook, President Donald Trump and Chinese President Xi Jinping expressed progress in talks on Thursday. President Trump said Thursday he had a “long and very good conversation,” the Wall Street Journal reports.
The easing tension between the two, especially over trade talks, could help reduce the murky outlook on semiconductors that plagued the sector when investors and observers considered the ramification of increased trade barriers.
“Anything positive on trade is definitely going to be a boost to markets and it eases concern around the whole issue with China,” Carbone added
For more information on the tech segment, visit our technology category.
POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
- Google Pledges $25M in New ‘AI Impact Challenge’
- IBM to Acquire Cloud Computing Firm Red Hat for $34B
- The 1040X – 15 Facts About Amending Your Tax Return
- Credit Card Rates on the Rise
- Mohnish Pabrais Says Volatility is His Friend