Bank of America expects more stocks to participate in market rally during the second half

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The first half of 2023 was the best for the S&P 500 since 2019, surging 15.9%.

Tech stocks led the way higher for the market in the first half. Bank of America expects other names to join in on the rally during the second half. The first half of 2023 was the best for the S & P 500 since 2019, surging 15.9%. The tech-focused Nasdaq Composite , meanwhile, had its best first half since 1983, jumping 31.7%. The Dow Jones Industrial Averag e added a more muted 3.8% gain. .SPX .IXIC,.DJI YTD mountain Major indices However, the rally also had the narrowest breadth in history.

7% assuming the index stays flat through the year end," Subramanian said. "We expect breadth to continue to broaden out as seen in June, and expect the equal-weighted index to outperform the cap-weighted index in 2H," she continued. The Invesco S & P 500 Equal Weight ETF , which tracks a version of the S & P 500 in which stocks are weight equally rather than by market cap, is up just 5% year to date. However, the ETF would benefit from a greater number of stocks rising.

 

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