2023-06-01 22:17:30
Another wave of rally in tech giants has pushed the S&P 500 up this year to nearly 10% ahead of Friday’s jobs report, amid betting that the Federal Reserve will hold off on raising interest rates in June.
After a moment of catching a glimpse into the tech giants’ runaway rally, fueled by an AI mania, this group is back in full force.
Nvidia shares jumped nearly 5%, leading the Nasdaq 100 gains.
Excluding all the AI-related mania that sent blue chip stocks up 17% in May; The sector also got a boost with falling bond yields and sales that beat estimates at Dell Technologies.
“One could ask how many months (May) do we see, and only the big tech companies in the US are making a superior return on equity across the board,” said Nicholas Colas, co-founder of DataTrek Research. The old Keynesian adage that “markets may behave irrationally for a longer period of time to avoid bankruptcy” rings true, especially in the current investment environment.
The Standard & Poor’s 500 Index rose 1% on Thursday, reclaiming the 4,200 level. Another indicator issued by the Bank of America, which tracks the average stock buy recommendations issued by Wall Street experts, has reached its closest point to the stock “buy” signal in more than 6 months.
Artificial intelligence supports technology stocks, leaving Bitcoin alone
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