The law also sets a 15.5% one-time tax on cash and cash equivalents held overseas, which in turn will help tech giants like Apple Inc. Lower corporate tax will encourage tech companies to raise investment in new cloud services and data centers.įurther, Trump’s tax repatriation policy, which contains a one-time tax of 8% on illiquid overseas assets, is likely to improve the overall financial health of tech companies. Moreover, the Tax Cuts and Jobs Act of 2017 lowers the corporate tax rate to 21% from 35%, per recent developments. Technology mutual funds have also gained 35.6% this year.Ī strengthening economy and better job prospects provided a significant boost to economically sensitive growth sectors like technology that typically perform well in a maturing economic cycle. Additionally, technology mutual funds have increased 36.5%, notching the best gains among the major sector equity fund categories, per Morningstar. Moreover, the Technology Select Sector SPDR ETF (XLK) is the biggest gainer among the S&P 500 sectors, adding 32.6% so far in 2017. The Nasdaq has advanced 28.9% year to date, outperforming the Dow and the S&P 500, which increased 25.2% and 19.7%, respectively over the same period. The tech-heavy index, Nasdaq has beaten the other two key benchmarks, the Dow and the S&P 500 by a considerable margin so far this year.
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