Technology shares rose to an all-time high on Monday as Wall Street awaited the latest quarterly results from some of the largest companies in the sector.
The S&P 500 tech sector climbed 0.5 percent to close at a record, helping lift the overall index by 0.2 percent to 2,806.98. Tech's gains also pushed the Nasdaq Composite higher by 0.3 percent to 7,841.87.
Google-parent Alphabet reported better-than expected earnings after the bell, while Facebook and Amazon are scheduled to release their results later this week. Technology shares have been the best performers of 2018, rising 15.4 percent through Friday’s close.
The Dow Jones Industrial Average closed 13.83 percent lower at 25,044.29, however, amid lingering concerns outside of tech.
So far, more than 17 percent of S&P 500 companies have reported earnings for the previous quarter, with 82 percent of those companies topping analyst expectations, according to FactSet data. Wall Street has high hopes for this earnings season, with analysts expecting year-over-year growth of 20 percent.
“It’s early days for Q2 earnings season, but so far this is looking to be a very good reporting cycle,” Nicholas Colas, co-founder of DataTrek Research, said in a note Monday. "Here’s the strange bit, however: analysts are not yet raising their Q3 earnings estimates. In fact, they are marginally lower than at the end of June.”
“This is not what we expected to see, given the magnitude of the beats so far for Q2. Our explanation (for now) it that the revisions will come as more companies report and analysts assimilate all that data into future earnings expectations,” Colas said.