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Market Update

The Week in Stocks and Funds

Tech roars, energy stocks whimper.

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Wednesday's Federal Reserve interest-rate cut didn't spark a broad-based market rally, but technology shares did managed to post solid gains. The Nasdaq Composite index posted the week's biggest gain, rising 6% to 2,161. Meanwhile, the Dow Jones Industrial Average dropped 1% to 10,502, and the S&P 500 index ended the week down 0.2% at 1,224.

Fund Category Returns
The specialty-technology category rose 3% for the week through Thursday, led by funds that specialize in semiconductor names. Although several semiconductor makers issued earnings warnings last week, chip-heavy funds posted solid gains. Investors apparently have begun to believe things can't get any worse for the industry. Semiconductor Ultrasector (SMPIX), a leveraged play on the chip business, soared 11% for the week through Thursday. Even non-leveraged funds put up big numbers: Fidelity Select Electronics  (FSELX) rose 6.4%, while Rydex Electronics (RYSIX) gained 7%.

Scott Cooley does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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