Tech stocks are back: The market is now starting to look like it did in 2021
Technology is on the rise on Friday, and that continues a trend for 2023. What’s old is new. It’s been a choppy week, with the S&P 500 down 2.5%. Despite this, the index is still up 1.6% for the year. Leadership this year looks like the reverse of 2022 and looks a lot like 2021. Growth leads, defensive sectors lag. Sectors in 2023 Semiconductors up 8.5% Communication Services up 6.9% Consumer Discretionary up 5.1% Technology up 2.8% Healthcare down 2.1% Consumer Staples Down 3.4% Bringing the Group Together It’s not just that old growth stocks are back, the leadership of old growth stocks is back. Microsoft is the only recalcitrant. Large-cap growth stocks in 2023 NVIDIA up 14.8% Meta up 13.2% Amazon up 11.6% Alphabet up 5.6% Apple up 4.2% Tesla up 3.3% Microsoft down 3.2% Tech is up on Friday The mainstream press will focus on the 12,000 jobs cut at Alphabet (6% of the total workforce there), but is less likely to note that the company, like other big techs, has been on a hiring spree during the pandemic. Growth prospects are much weaker. Alphabet is up 4% in the pre-opening because the job cuts will 1) help support incomes, 2) make Federal Reserve officials happy because they want tougher working conditions.