Market Review
Following a difficult first quarter, technology stocks rebounded strongly in the second quarter. The S&P 500 ® index advanced 10.94% for the three months. Within this broad index, the sectors that performed best in Q2 were “risk-on” groups, headed by information technology, communication services and industrials. Like the S&P 500 ® , technology stocks ended June at an all-time high, as measured by the MSCI index, after erasing a brief but steep earlyApril decline that followed President Trump’s announcement of a sweeping tariff plan. The historically fast rebound was set off by a 90-day pause on most planned tariffs, and sustained by robust corporate profits, a solid economy and inflation trending around the Federal Reserve’s 2% target. These tailwinds overshadowed rising tension in the Middle East and lingering uncertainty about trade ahead of the July 8 expiration of the tariff pause.
Semiconductors (+41%) topped the MSCI index’s industry groups amid a return of speculative “animal spirits.” With that said, much of the buying was spurred by positive fundamentals, as investors realized that the DeepSeek generative AI platform announced in January, which is powered mainly by software algorithms, was not slowing the avalanche of spending on AI hardware – including graphics processing units, neural processing units and custom AI chips – from companies such as Nvidia (+46%), Advanced Micro Devices (AMD) (+38%), Marvell Technology (+26%) and Broadcom (+65%). Systems software (+32%) was another subsector that stood out for its robust gain. Microsoft was one stock in this group that was seen as an “AI winner,” not only for its Azure data-center operation, but also for the potential of its Copilot AI add-on for the firm’s Microsoft 365 office productivity software suite.
On the other hand, the technology hardware, storage and peripherals (-4%) group was the only segment in the MSCI index to record
#Fidelity #Select #Technology #Portfolio #Commentary #Mutual #FundFSPTX
Fidelity Select Technology Portfolio Q2 2025 Commentary (Mutual Fund:FSPTX)
Market Review
Following a difficult first quarter, technology stocks rebounded strongly in the second quarter. The S&P 500 ® index advanced 10.94% for the three months. Within this broad index, the sectors that performed best in Q2 were “risk-on” groups, headed by information technology, communication services and industrials. Like the S&P 500 ® , technology stocks ended June at an all-time high, as measured by the MSCI index, after erasing a brief but steep earlyApril decline that followed President Trump’s announcement of a sweeping tariff plan. The historically fast rebound was set off by a 90-day pause on most planned tariffs, and sustained by robust corporate profits, a solid economy and inflation trending around the Federal Reserve’s 2% target. These tailwinds overshadowed rising tension in the Middle East and lingering uncertainty about trade ahead of the July 8 expiration of the tariff pause.
Semiconductors (+41%) topped the MSCI index’s industry groups amid a return of speculative “animal spirits.” With that said, much of the buying was spurred by positive fundamentals, as investors realized that the DeepSeek generative AI platform announced in January, which is powered mainly by software algorithms, was not slowing the avalanche of spending on AI hardware – including graphics processing units, neural processing units and custom AI chips – from companies such as Nvidia (+46%), Advanced Micro Devices (AMD) (+38%), Marvell Technology (+26%) and Broadcom (+65%). Systems software (+32%) was another subsector that stood out for its robust gain. Microsoft was one stock in this group that was seen as an “AI winner,” not only for its Azure data-center operation, but also for the potential of its Copilot AI add-on for the firm’s Microsoft 365 office productivity software suite.
On the other hand, the technology hardware, storage and peripherals (-4%) group was the only segment in the MSCI index to record
#Fidelity #Select #Technology #Portfolio #Commentary #Mutual #FundFSPTX