The first half of 2023 has been marked by a significant run-up in the markets, particularly in the technology and artificial intelligence sectors. The tech-heavy NASDAQ Composite has seen a year-to-date (YTD) increase of 15.2%, outpacing the broader S&P 500, which has grown by 11.8% YTD.
Leading the charge in the tech sector are some familiar names. Apple (AAPL), Microsoft (MSFT), Google’s parent company Alphabet (GOOGL), Amazon (AMZN), and Facebook (FB) have all posted impressive growth figures. Apple, for instance, reported a 21.5% increase in revenue in Q1 2023 compared to the same period last year, while Microsoft’s revenue grew by 19.7% in the same period. Alphabet, Amazon, and Facebook also reported double-digit revenue growth, underscoring the strength of the tech sector.
This market rally has been bolstered by favorable economic data. The Consumer Price Index (CPI) has remained stable, indicating controlled inflation levels. Meanwhile, employment data has shown positive trends, with the unemployment rate dropping to 3.8% in May 2023, the lowest it’s been in the past year.
- Joe Rambow, CPFA