Apple Leads Dow Higher

ENLARGE

Photo: Zuma Press

Tech stocks are back, at least for the day.

Both the Dow Jones Industrial Average and the S&P 500 owe the sector for a solid chunk of their Tuesday gains. Technology companies in the S&P 500 are up 1.7%, far exceeding the broader index’s 0.7% rise, and Apple and Microsoft combined are contributing 26 points to the Dow’s 96-point rise.

It’s a rarity for tech to be such an outperformer this year. The sector’s performance is only mediocre in 2016 following a strong 2015. While it’s up 1.7% year-to-date, it’s beating only healthcare, financials and consumer discretionary stocks. Last year tech companies in the S&P 500 rose 4.3%, compared to the broader index’s nearly flat performance.

Much of those gains have come this month, with Apple’s stock in particular having a blockbuster March. Apple shares are up 11% for the month, putting their yearly gains at 2.3%. Last year Apple rose more than 18% before taking a tumble in the second half of the year, ending 2015 down 4.6%. Tuesday’s gains for the stock come a day after the FBI said it had cracked a terrorist’s iPhone without Apple’s help and is looking to drop its legal case against the company.