Investors are struggling to understand how to play heavyweight U.S. technology shares, which trade well above long-term valuations regardless of a sell-off last month that took some attention out of the stocks.
After leading the rally back from the lowest Market in March, the S&P 500 information technology sector has recently underperformed, turning out to be among the weakest within the S&P 500 back in September. The tech sector now remains down about 8%, post peaking on Sept. 2, compared to about a 5% decline in the S&P 500.
Considering the sell-off, the S&P 500 technology sector is trading at around 25 times forward earnings, and at an almost 55% premium to its 10-year average, IBES data indicates, according to Refinitiv analysts.
To Read More: Reuters