TECH CALMS DOWN, BUT STILL STRONG AS THE WORLD GOES DIGITAL

Technology company stocks are in rest mode this year, but what may seem like weakness as the economy recovers is really just dormancy.

Digital devices, software and even cybersecurity will be the key areas for steady growth as consumers and businesses become more digital in how they operate, analysts say. The virus pandemic made that digital shift much sharper when people were forced to work, shop and stay entertained at home and that trend is only going to become more ingrained.

“Looking ahead there are a lot of trends that accelerated during the pandemic that have staying power even as the economy reopens,” said Kristina Hooper, chief global market strategist at Invesco.

Tech stocks have been quiet most of this year, with a roughly 6% gain, as investors take advantage of growth elsewhere with the economic rebound. It’s a sharp contrast to 2020, when the sector surged 42%. And while 2020′s sharp growth will likely not be repeated, tech companies and their stocks are poised for long-term growth well past the pandemic.