Apple stock is at high levels, and Nvidia stock beats records. Assets related to US stock indices appear to be among the best choices one could make at the beginning of 2023. However, how can this be, considering the numerous forecasts of a significant drop in the US market and economy? Let's delve into the reasons behind the rise in US indices and explore the factors that could influence future market movements.
By the way, it’s not only stocks that have indices. It’s also vital to monitor currency indices. The most crucial one is the US dollar index , which indicates how the USD performs against a basket of other major currencies and helps estimate the true strength of the dollar. The FAANG, which includes companies like Meta , Apple , Amazon , Netflix , and Alphabet , has achieved almost 60% growth. Meanwhile, with the inclusion of 500 companies, the S&P 500 has shown good, though not particularly impressive, results. This is significant because big-tech companies are the primary drivers of the increase in the indices. The average result for other stocks is close to zero.
The general situation remains hard to predict. On the one hand, it’s better than expected. But on the other, the might and influence of big techs are as significant as they were prior to the dotcom bubble.