The 2023 rally by the S&P 500 index is being led by megacap tech-related stocks, whose weighting in the index is at a historically high level. That’s sparked a lot of worry about the durability of the bounce.
The S&P 500 SPX is up more than 7% so far in 2023, after last year’s 19.4% slide. The top 10 stocks hold a 29% weight in the index, and are responsible for around 70% of year-todate performance, said Ross Mayfield, investment strategy analyst at Baird, in a Thursday note. Why is that? For one, unlike during the dot-com bubble of the late 1990s, the current crop of tech giants largely produce real earnings and strong cash flow, Mayfield said.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market news today: S&P 500 gains as inflation coolsUS stocks rise after CPI shows inflation rose at slowest pace in 2 years in April
Source: BusinessInsider - 🏆 729. / 51 Read more »