Tech stocks close out first six-week rally since January 2020

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The Nasdaq Composite rose 2% this week, boosted by a big rally in Tesla and an earnings from software maker MongoDB

earnings report and a surge in optimism around demand for technologies powering artificial intelligence workloads, this week didn't see any notable news in the mega-cap group. But there was continued upward momentum.led the way, with an 11% increase for the week. Shares of the electric vehicle maker are now up 74% for the year after losing roughly two-thirds of their value in 2022.

Tesla and Nvidia, which has climbed 169% this year, have helped pull the Nasdaq up 27% in 2023, far outpacing the S&P 500 and Dow Jones Industrial Average. After peaking in late 2021, the Nasdaq plummeted 33% last year, its steepest drop since the financial crisis, on concerns surrounding inflation and rising interest rates. The index is still about 18% off its all-time high.

"I'm focusing on mega-cap tech here and semiconductors as well," said Danielle Shay, vice president of options at Simpler Trading, in an interview on CNBC's "The Exchange" on Friday. "The A.I. trade has been absolutely phenomenal."

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