Tech ETFs Rally

There has been a notable surge in technology stocks while financial stocks have experienced a slump, creating a significant divide between the two sectors. Approximately $4 billion has flowed into tech funds, marking the highest inflow since the end of 2021 and coming close to a six-year high of around $5 billion. . Conversely, financial equity funds saw an outflow of approximately $2 billion, the largest in over a year and not far from the largest in about six years, which was slightly over $3 billion. The Technology Select Sector SPDR ETF (XLK) has already gained nearly 12% since March 1, just before banking issues caused a decline in the 10-year Treasury yield from 4% to 3.5%. The SPDR S&P Regional Banking ETF (KRE) has dropped approximately 41% since March 1 due to declining banking revenue caused by a decrease in lending.