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Tech shares rebound as QQQ breaks out near record highs
Invesco QQQ closed about 1% below its all-time high after breaking out of a multi-month consolidation, lifting momentum for individual tech names like Microsoft.
Technology stocks reversed higher after the Federal Reserve’s Sept. 16 rate decision, with the market erasing an expected sell-off and moving into a sharp recovery. The rally carried into the Sept. 21 session, when tech gapped up and Invesco QQQ broke out of a multi-month consolidation to close within about 1% of its all-time high, according to MarketBeat Ratings.
MarketBeat Ratings said that when the technology sector benchmark clears a long-held range, it often allows individual stocks to follow through with their own breakouts. The outlet highlighted Microsoft, Atlassian, and Hewlett Packard Enterprise as companies positioned to benefit if tech momentum continues.
For Microsoft, MarketBeat Ratings noted the stock climbed back above $500 on Sept. 21 and is up just under 3% for the year. The analysis attributes the recovery to Azure’s reacceleration to strong double-digit growth tied to enterprise adoption of AI, along with a Copilot franchise that has scaled its paid user base.
MarketBeat Ratings also pointed to Microsoft’s analyst consensus and technical level to watch, with a “Moderate Buy” view across 47 analysts and an average price target of $567.07. It added that Microsoft will need to clear its multi-month high near $520 to confirm a breakout and start a new advance.