Definition ∞ Technology stocks represent shares of companies involved in the research, development, or distribution of technologically advanced products and services. These companies typically operate in sectors such as software, hardware, internet services, and semiconductors. Their performance is often linked to innovation cycles, market adoption of new technologies, and overall economic growth. These equities are a significant component of global financial markets.
Context ∞ The performance of technology stocks often serves as a barometer for broader economic sentiment and can influence investment flows into other high-growth sectors, including digital assets. Market news frequently analyzes the correlation between tech stock movements and cryptocurrency valuations, particularly during periods of macroeconomic uncertainty. Investor appetite for risk assets is often reflected in the performance of these two interconnected markets.