<div id="readability-page-1"><div><div>In a quarter that began with fears of a tech wreck following President Donald Trump‘s sweeping tariff announcements, Wall Street’s tech darlings pushed sector benchmarks to one of their strongest quarterly gains on record, reigniting optimism for a continued summer rally.The Technology Select Sector SPDR Fund XLK, which tracks the broader tech sector, soared 22% during the second quarter of 2025. That marked its best quarterly performance since the second quarter of 2020, when central banks pumped liquidity into the system to combat the COVID-19 crisis, and its second-best quarter since the aftermath of the dot-com collapse in 2002.From the April lows—hit just after Trump’s tariff policies were unveiled—the XLK has rocketed 45%, registering its strongest 13-week rally since June 2020 and second-best since the ETF was launched in 1998.<h3>Chart: Tech Stocks Log Historic Quarter </h3><h2>5 Stocks Drove Over Half Of XLK’s Historic Rally</h2>Five stocks were responsible for about two thirds of the tech sector’s total return during the quarter.<ul> <li>Nvidia Corp. NVDA was the single most important contributor. Shares of the AI darling jumped 43.2%, contributing 537 basis points, or 5.37%, to XLK’s quarterly performance thanks to its 14.6% weight. </li> <li>Microsoft Corp. MSFT followed closely. With a 14.24% weighting, it added 420 basis points to the index through a 31.8% price gain.</li> <li>Broadcom Inc. AVGO climbed 62.2%, contributing 229 basis points to the sector performance. </li> <li>Oracle Corp. ORCL delivered a 56.5% return in the quarter, driving 154 basis points of performance for XLK.</li> <li>Palantir Technologies Inc. PLTR rocketed 59.7%, responsible for 141 basis points of the sector’s rise. The rally coincides with the software company’s expansive role within the Trump administration (Palantir received a $30 million contract to develop a tracking platform to aid Immigration and Customs Enforcement).</li> </ul>Together, these five stocks delivered 14.81 percentage points, accounting for nearly 67% of the XLK's total quarterly return.Read Also: Nvidia’s Big Moment Is Back—Stock Exploded 500% The Last Time This Happened <h2>What To Expect For Tech Stocks In Q3? History Says: Watch July</h2>While the third quarter is generally positive for tech, the gains tend to show up early. According to Seasonax data, looking at last 20 years the XLK has averaged a 2.7% gain from July 1 to October 1, with gains in 14 of those years.However, recent third quarters haven't been kind. In 2022, the ETF fell 3.9%. In 2023, it dropped 4.5%. In 2024, it slid another 3.7%.July, on the other hand, tells a different story. It's historically the strongest month for tech. XLK has averaged a 2.86% return in July over the past two decades, with gains in 76% of those years.<h2>Golden Cross Signal May Support The Trend</h2>On June 30, the XLK triggered a golden cross, a bullish technical setup where the 50-day moving average crosses above the 200-day average. It often signals the start of a longer-term uptrend.A backtest of this strategy—buying on the golden cross and selling on the next death cross—shows solid historical performance since 2009. Only one of the nine trades posted a loss. Most produced double-digit returns, particularly during strong bull markets. The latest signal adds another reason to believe this rally could extend through the summer—at least for now.Now Read <ul> <li>Nasdaq 100 Hits Record Highs After 30% Rally: History Suggests It’s Not Done Yet </li> </ul>Image: Shutterstock</div></div></div>

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Nvidia and Palantir have significantly contributed to a historic tech rally, with the Technology Select Sector SPDR Fund (XLK) soaring 22% in Q2 2025, marking its best performance since Q2 2020. Five stocks, including Nvidia (up 43.2%) and Microsoft (up 31.8%), drove nearly 67% of XLK's total return. Despite mixed results in previous third quarters, July has historically been strong for tech, averaging a 2.86% return. A recent golden cross in XLK suggests a potential continuation of this rally through the summer.

- Wall Street's tech sector experienced a remarkable 22% gain in the second quarter of 2025, driven by major companies like Nvidia and Microsoft.  
- Five stocks contributed significantly to this rally, accounting for nearly 67% of the Technology Select Sector SPDR Fund's total quarterly return.  
- The XLK's recent golden cross signals a potential continuation of this upward trend, supported by historical data indicating July is typically a strong month for tech stocks.  

Nvidia, Palantir Fuel Historic Tech Rally — And It's Far From Done