Macro
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| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
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| +0.07 | +0.10 | +0.27 | +0.20 | +0.20 | +0.20 | +0.20 | +0.20 | +0.20 | +0.20 | +0.20 | +0.20 |
The tech sector this month feels cautiously optimistic, supported by Intel's successful launch of the Pentium chip, which reinforces its dominance in the surging PC market. While IBM's appointment of outsider Louis Gerstner signals a recognition of deep structural challenges, the move instills modest confidence in its turnaround potential. Overall, strong momentum in core computing hardware is driving sentiment, with leadership shifts adding measured optimism.
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IBM posted a $4.97 billion annual loss as mainframe demand collapsed, days before announcing its first-ever dividend cut and the departure of CEO John Akers. The icon's fall symbolized the shift of computing value to PCs, chips and software. Its shares had lost over 70 percent from their 1987 high, reshaping the Dow's complexion.
IBM has named Louis V. Gerstner Jr., former RJR Nabisco chairman, as its new CEO, marking the first time an external leader has been chosen to head the company amid record losses and declining market share. Gerstner, despite lacking direct tech industry experience, is tasked with revitalizing IBM's business strategy, restoring profitability, and improving morale after years of restructuring. The market responded positively, with IBM shares rising, signaling investor confidence in a potential turnaround.