It’s Still Tech’s Year. These Stocks Led the Market in August.

After a strong surge in June and July, the S&P 500 index has experienced a significant decline in August, with tech stocks being hit particularly hard, as fears of rising interest rates and a slowdown in China weigh on the market.

Tech stocks rebounded on Monday, with the Nasdaq Composite climbing 1.6% and the S&P 500 adding 0.7% as bargain hunters took advantage of discounted prices, despite the 10-year Treasury yield reaching its highest level since 2007. Palo Alto Networks saw a significant surge after reporting higher-than-expected earnings and revenue, indicating strong demand for its artificial intelligence security operations platform.

Tech shares boosted U.S. stock indexes despite higher yields on Treasurys, with investors scaling back on bets for interest-rate cuts due to the strong U.S. economy.

Tech stocks The Trade Desk (TTD) and Atlassian (TEAM) are undervalued in the market in terms of their long-term potential in machine learning and AI, as both companies have yet to fully showcase their AI capabilities and benefits, making them prime opportunities for investors.

U.S stocks are recovering from losses, with the S&P 500 and Dow Jones Industrial Average both up 0.4%, as tech stocks lead the market higher and investors await key data on inflation this week.

Tech stocks retreated as Oracle posted slowing cloud sales, while the euro and pound weakened due to concerns over stagflation in Europe. Smurfit Kappa Group plunged after announcing a deal with WestRock Co., and investor confidence in Germany's economy improved. US inflation data and the European Central Bank's interest-rate decision are upcoming events.

Big Tech stocks have been driving this year's market rally and have continued to outperform despite recent market volatility.

Tech stocks led a retreat on Wall Street as investors were concerned about the Federal Reserve's hawkish stance and its decision to keep interest rates steady, causing the S&P 500, Dow Jones, and Nasdaq Composite to decrease; Goldman Sachs has delayed its forecast for a Fed rate cut to the fourth quarter of 2024.

The stock market had a cool summer with the Dow Jones up 0.5%, the S&P 500 down 0.4%, and the Nasdaq down 1.3% from June 21 to Friday, as big tech stocks experienced a slump while energy stocks performed well.