Brian Belsky, chief investment strategist at BMO Capital Markets, argues that the stock market rally is broader than investors think about “making money.”
Improving corporate earnings and better-than-expected economic data fueled investor optimism, sending the S&P 500 index higher than ever, topping the 5,000 level for the first time.
The U.S. Department of Labor’s Bureau of Labor Statistics said its optimism grew after revised data on Friday showed consumer inflation slowed late last year.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| SP500 | S&P500 | 5022.82 | +24.91 | +0.50% |
But strategists caution that the rally has a lot to do with just a handful of companies.
“As you know, technology is very important. Microsoft, Apple, and Nvidia make up 18% of the S&P 500, and the total is about 30%, and the technology is worth more today than it was at its peak in 2000. “The bubble has burst,” Bob Dole, CEO of Crossmark Global Investments, said in an interview with FOX Business.
ARM CEO talks about the rapid growth of the stock market
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| MSFT | Microsoft Corporation | 414.11 | +0.06 | +0.01% |
| AAPL | Apple. | 188.32 | -1.09 | -0.58% |
| NVDA | NVIDIA Corporation | 696.41 | -4.58 | -0.65% |
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Dole points out that Microsoft’s market capitalization exceeded $3 trillion on Friday, surpassing the iPhone maker’s $2.9 trillion, according to research by the Dow Jones Market Data Group. is on track to overtake Apple and become the world’s largest company.
Microsoft CEO Satya Nadella speaks at the OpenAI DevDay event in San Francisco on November 6, 2023. (Justin Sullivan/Getty Images/Getty Images)
Under CEO Satya Nadella, Microsoft becomes the first American company If it closes above $415.84 per share, its market cap would exceed $3.1 trillion. The company is having a record year, with cloud computing and artificial intelligence driving its $62 billion in revenue.
What is artificial intelligence (AI)?
“Since we talk about AI; Apply AI at scale By bringing AI to every layer of our technology stack,” Nardella said on an earnings call in January.
apple vs microsoft (Dow Jones Market Data Group)
Over the past three months, the best-performing S&P sectors were communications, technology and consumer discretionary stocks, rising 17%, 16% and more than 10%, respectively.
“Consider that only three sectors have outperformed the SPX over the past 12 months: Information Technology, Communication Services, and Consumer Discretionary.The first two sectors have outperformed the index dramatically. , we believe these sectors are overvalued and believe investors would prefer to reduce their exposure to our levels.” Senior Global Market Strategist, Wells Fargo Investment Institute , Scott Wren said in a note to clients that he suggested a neutral allocation to technology and communication services and an underweight allocation to consumer discretionary.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLC | Telecommunications Services Select Sector SPDR Fund | 79.25 | +0.18 | +0.23% |
| XLK | Technology Select Sector SPDR ETF | 205.08 | +0.64 | +0.31% |
| XLY | Consumer Discretionary Sector SPDR ETF | 178.63 | +0.78 | +0.44% |
Both have outperformed broader indexes, up 5% this year and more than 22% over the past 12 months as of Friday.
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