Nasdaq, the tech heavy index is roaring with the bulls back in the market. For the first time in nearly three years, the Nasdaq 100 Index surged into a new bull market after rising more than 20% from its December 28 closing low. After a significant recovery from its Covid lows in March 2020, the Nasdaq 100 last entered a bull market in April 2020.
The top 5 stocks that have gained over 50% YTD are NVIDIA Corporation, Meta Platforms, Tesla, Seagen and Warner Bros. Discovery. NVIDIA tops the chart with nearly 84% returns YTD.
Nearly 72% stocks of Nasdaq 100 are in green and have given positive returns till date in 2023.
In 2023, technology stocks have performed better than average due to investor speculation that the Federal Reserve may cease raising interest rates sooner than anticipated due to recent bank stress, poor economic statistics, and the possibility of a recession. In addition, investors have been adopting the sector as a haven during the steep falls in financials.
A notable technology index for the US stock market is the Nasdaq 100. Most of the world’s leading blue-chip corporations, including Tesla, Apple, Amazon, Meta (the parent company of Facebook), Alphabet (the parent company of Google), and many others, are listed on the Nasdaq-100 Index.
A rise in Chinese tech stocks and lessening worries about a banking crisis are driving the stock market upward. SVB’s problems, according to Michael Barr, vice chairman for supervision at the Federal Reserve, were brought on by poor risk management, raising the possibility that this was an isolated incident.
Meanwhile, Chinese tech giant Alibaba’s plans to split up at the same time spurred optimism for a recovery in the nation’s tech industry, which had been hurt by Beijing’s crackdown over the previous two years.
US stock market investors are currently anticipating economic data releases this week, especially the core PCI price index scheduled on Friday, as well as comments from a number of Fed governors for hints on monetary policy.