One factor driving the surge could be investors seeing Big Tech's massive gains from the first six months of the year and deciding to sell their shares for profit, before diversifying into other sectors, according to UBS. "I know they're still really important for markets, but we're actually seeing a broadening in performance, with a number of names from different sectors hitting 52-week highs," she added.Ī glance at a list of the 10 best-performing stocks year-to-date backs up Brooks' belief that the 2023 rally is no longer just about tech – with General Electric, homebuilder PulteGroup, and three cruise lines featuring alongside Nvidia, Meta Platforms, and Tesla. "We've kind of moved on a little bit ," Minerva Analysis founder Kathleen Brooks told Insider in a recent interview. The proportion of S&P 500 stocks trading above their 200-day average – an indicator of market breadth – climbed as high as 65% this week, the highest since mid-February. Suddenly, the word on analysts' lips is "breadth" – used to describe a rally that lifts a wide distribution of stocks, rather than a handful of select names. June was the benchmark S&P 500 index's best month since October, with a 6.5% gain that was close on the heels of the FANG+ group of New York Stock Exchange-listed Big Tech companies. ![]() Xinhua/Wang Ying/Getty Imagesīig Tech stocks led US stock gains in the first half of 2023, fueled by an explosion of interest in AI.īut the rally is now broadening out to other sectors – June was the best month this year for the S&P 500 index.Ī gauge of US stock-market breadth just hit the highest level since February.įor most of 2023, the dominant story for equity investors has been the rise of artificial intelligence – which helped fuel a stunning surge in " Magnificent Seven" Big Tech stocks including Apple, Microsoft and Nvidia.īut there are signs the rally is now broadening out to other sectors. Big Tech stocks started 2023 on a tear – but that rally has broadened into other sectors in recent weeks. You can follow him on Twitter and on Instagram. Pras Subramanian is a reporter for Yahoo Finance. Tesla and Elon Musk may have learned compromise isn’t a dirty word - just as long as it boosts the bottom line. “Politicians in the US have gone out of their way to not be too critical of Elon's dealings in China, presumably because they want support from other areas of his empire, such as SpaceX,” China Beige Book’s Miller said. Maybe this is why a more compromise-driven Tesla hasn't faced much heat for what appears to be an anti-competitive deal it signed in China. Perhaps a more conciliatory, and maybe even friendly, Tesla will emerge as the company matures - even one that’s willing to work with President Biden and other politicians when it sees fit. (The "honor" will likely include some form of payment from Ford, GM, and other partners.) ![]() "Tesla is happy to support other EVs via our Supercharger network," Musk said, adding that it was an "honor" to be working with Ford on charging. And just this Friday Tesla added another partner to the mix, as German luxury giant Mercedes-Benz (MBGYY) will now join the Supercharger Network and will include Tesla's NACS port on its EVs starting in 2025. Tesla's deal with Ford led to other dominos falling: GM (GM), Rivian ( RIVN), and Volvo (VLVLY) also adopted Tesla’s North American Charging Standard (NACS) and joined its charging network. Many experts figured Tesla would hold on to that competitive advantage. Tesla’s recent partnership with Ford (F) to use its Supercharger network blindsided the industry. Nevertheless, this move, paired with Tesla’s latest collaborations with its Supercharging network, shows that the company is willing to compromise when it sees fit - and when it is financially beneficial. Kinder? Gentler? Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of Twitter.
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