Will Tech Stocks and the S&P 500 Continue to Rally In June 2023?
Tech stocks took quite the tumble
in 2022, but it looks like theyU+02019re bouncing back, giving
investors who weathered the storm a reason to smile.
With its sixth consecutive weekly
rally, the Nasdaq Composite - home to many tech giants - rose 2% last week.
The last time we saw such consistency was before the Covid-19
pandemic turned our world upside down in early 2020.
Wall Street got a big lift from
FridayU+02019s strong jobs report for May and the SenateU+02019s
approval of a debt ceiling bill on Thursday night. The bill keeps
the U.S. from defaulting on its debt, which is a huge
The prior weekU+02019s gains were
boosted by NvidiaU+02019s (NASDAQ:
NVDA) impressive earnings
report and a wave of
optimism around AI
technology. Last week,
however, didnU+02019t have any standout news from the major
tech players, but their
shares continued to climb regardless.
Tesla took the lead out of all
the Nasdaq heavyweights, surging 11% over the last four trading
sessions. After taking a big hit in 2022,
TeslaU+02019s (NASDAQ: TSLA)
shares have made a remarkable turnaround, skyrocketing 74% this
Tesla, alongside Nvidia - which
has seen a 169% surge this year - are the superheroes that have
propelled the Nasdaq to a 27% rise in 2023, leaving the
S&P 500 and
Dow Jones Industrial Average in the dust.
The Nasdaq took a 33% nosedive -
the worst since the financial crisis. Fearing inflation and rising
interest rates had investors running for the hills. While
itU+02019s making a commendable comeback, itU+02019s still about
18% shy of its all-time high.
Apple expected to launch a virtual reality headset on
Get ready to step into the future
as Apple (NASDAQ: AAPL)
gears up to reveal its first virtual reality headset next week. It
will be the first significant product line since the Apple Watch
was launched in 2014.
has it this gadget will boast high-definition screens right before
your eyes. But thatU+02019s not all, as high-tech cameras on the
device could create a U+02019passthroughU+02019 or mixed reality
experience, allowing you to interact with the real
AppleU+02019s Wearable, Home, and Accessories
revenue surpassed $41 billion in fiscal 2022. Apple AirPods
generates $10 billion in sales yearly, while the Apple Watch rakes
in between $14 billion and $18 billion annually.
fiscal 2022 the company sold:
million Apple Watches
Will the VR headset, which might be priced at a
lofty $3,000, unlock another multi-billion-dollar revenue stream
for the tech giant?
Macro-data to watch out for
This Wednesday, weU+02019re set
to get the scoop on the U.S. trade deficit from the U.S. Department
of Commerce folks. If forecasts hit the bullseye, we could see the
trade gap in April stretch to a hefty $75 billion, up from
MarchU+02019s $64.2 billion. The trade deficit is like the
thermometer of the economy – a shrinking deficit can give our
nationU+02019s GDP a nice little boost.
The Federal Reserve is due to
dish out the details on consumer credit this week, giving us a
glimpse into U.S. consumer borrowing in April. In March, consumers
added $26.5 billion to their borrowing, zipping along at the
fastest pace weU+02019ve seen in four months. Credit card balances
leaped too, jumping up by 17.3%.
The March report indicates that
consumers havenU+02019t been shy about spending, despite borrowing
costs climbing up the ladder due to the Federal ReserveU+02019s
interest rate hikes. Expect consumer borrowing to dial back a bit
in April, likely landing around the $20 billion mark.
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