That outperformance has come despite a gloomy outlook for the US economy, which many analysts have warned faces a credit crunch due to the implosion of regional lenders including Silicon Valley Bank and First Republic.
Tech stocks have also benefited from investors' expectations that the Federal Reserve will soon wind down its interest-rate hiking campaign, withOver 90% of traders believe the central bank won't raise borrowing costs again in June, according toThat'd likely benefit tech stocks - because when the Fed stops tightening, companies can borrow money at a fixed rate, boosting the future cash flows that tend to make up a core part of their future valuations.
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