MARKET SNAPSHOT: Tech Is The Game Amid Financial, Economic Uncertainty

By Nick Godt

Technology is the best performing sector so far in February, benefiting from investors playing an uncertain environment as both a defensive and a cyclical sector.

Technology, which defined growth in the 1990s, is down only 1.4% as a sector in February, making it the best, or the "least badly," performing sector this month. Healthcare, the most traditional defensive sector, is close behind, off 1.6% this month.

Investors have flocked to safe-haven sectors, as worries about the survival of big banks have led the financial sector to tumble 20% so far in February. The broad market, has measured by the S&P 500 index, is down nearly 18% year to date.

"The market is seeing tech as a defensive sector," said Owen Fitzpatrick, head of U.S. equities at Deutsche Bank. "With tech companies, there's not a lot of cash needs, so they don't need to access the credit flow."

BOND REPORT: Treasurys Pare Losses As Stocks Fall Back

Deborah Levine

Treasury prices were little changed Monday, erasing earlier losses as stocks moved deeper into the red amid investors' concern about how the government will support financial institutions.

Ten-year note yields (UST10Y) inched up 1 basis point to 2.79%, after earlier reaching 2.88%. A basis point is 0.01%.

Yields on two-year notes (UST2YR), which move inversely to prices, was little changed at 0.95%, after having briefly risen above the 1% mark for the first time since Feb. 10.

Bonds retraced losses as U.S equities surrendered early gains, indicating continued concerns about the banking sector after the government detailed plans to begin "stress tests" of financial institutions.

"There are a lot more questions than answers right now," said Mario De Rose, a fixed-income strategist at Edward Jones & Co.

Safe havens such as U.S. government debt typically draw money from investors not inclined to buy into riskier assets, like equities.