Shares of technology companies rose as the dollar weakened against other currencies.
More successful attempts by European nations at containing the coronavirus pandemic has boosted economic prospects there relative to the U.S., according to strategists at brokerage Goldman Sachs. That spurred the euro to a near two-year high against the dollar Tuesday.
"Sectors with a high percentage of international sales typically outperform alongside a weakening U.S. dollar," said Goldman Sachs strategists, in a note to clients. "Exchange rates are often a reflection of underlying economic conditions rather than a direct driver of stock returns, but historical patterns of equity performance alongside sharp dollar moves can provide insight into how investors should position portfolios based on their view of the forward path of the U.S. dollar."
This week is critical for "mega cap" tech companies, as four report earnings and are also sending executives to testify on Capitol Hill.
The chief executives of Amazon.com, Apple, Facebook and Google's Sundar Pichai, are set to appear before the House Antitrust Subcommittee investigating the market dominance of online platforms.
Virgin Galactic Holdings revealed its design for the passenger cabin in SpaceShipTwo, the suborbital craft it is building to send tourists into space. Shares of the company, which peaked above $37 before the pandemic briefly closed its development program, traded around $24.
Write to Rob Curran at rob.curran@dowjones.com
