Shares of tech companies ticked down on concerns about the sustainability of upward momentum in the sector.
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Jeffrey Pavlik, founder of hedge fund Pavlik Capital Management, said the rally to open the year that has been led by the tech sector had gone beyond a "melt-up" to become a "rage-up." The broad Standard & Poor's 500 is looking at an annualized gain of 175%, with daily gains averaging about 40 basis points, he noted. When former Federal Reserve Chairman Alan Greenspan warned of "irrational exuberance" in tech stocks in 1996, the pace of gains was far more pedestrian than the stock market has experienced in January 2018, Mr. Pavlik added.
Shares of chip maker Intel, which had been under some pressure after disclosure of security issues, rallied after the bell as the company posted earnings growth.
Rob Curran, email@example.com
(END) Dow Jones Newswires
January 25, 2018 17:06 ET (22:06 GMT)