Shades of 1998? Back then, credit turmoil forced the Federal Reserve to cut rates, and technology stocks embarked on the mother of all bull runs. This time, a cocktail of credit market paralysis and housing woes forced the Fed's hand. The technology sector is again partying (although, admittedly, not quite like it's 1999).

There are plenty of reasons. Superficially, tech appears insulated from the epicentre of economic weakness. As US consumer spending related to housing has slowed (big-ticket appliance sales rose 0.8 per cent in the first half year-on-year), spending on computers, peripherals and software rose 8.4 per cent. That is helpful, given tech companies' increased consumer focus. Apple, Google and Cisco, for example, are enjoying the new digital media product cycle.