Tech sector has ‘a false sense of security’ and is vulnerable, Morgan Stanley says

Tech stocks rose in pace with the broader market Monday, ahead of what’s expected to be a relatively strong earnings season, but Morgan Stanley is starting to see leaks in the sector’s gas tank.

Tech stocks on the S&P 500 index SPX, +0.88% rose 0.8% while the broader index finished up just shy of a 0.9% gain. Much of the drag on the tech sector came from shares of Twitter Inc. TWTR, -5.38% which fell 5.4% after a report of account suspensions. For the year, the S&P 500’s tech sector has gained nearly 14% while the broader index has advanced 4%.

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