Another bull is awakening from its 2022 slumber as investors continue to pile back into tech stocks that have been shunned for much of the past year. It's an interesting turn for the market, with worries over interest rates and a looming recession, but perhaps that is what is getting cash off the sidelines. Rates will soon peak - as telegraphed by the
Fed's dot plot - or easing may even ensue, while a lower growth environment can see a premium return to the old beloved tech names. Many are also nervous about missing out on the market ride-up, especially when weighing alternatives like high-yielding money market funds and inflation-linked bonds.
The latest: The Nasdaq 100 Index (
NDX) has surged into a new bull market for the first time in nearly three years, with the tech-heavy benchmark now
up more than 20% from its closing low on Dec. 28. The latest leg was
powered by earnings from Micron Technology (
MU), which
stressed confidence in industry fundamentals, as well as
broader rallies for megacaps Amazon (
AMZN), Apple (
AAPL) and Microsoft (
MSFT). Speaking of chips and tech, Nvidia (
NVDA) has exploded with an
advance of more than 80% so far this year,
taking these ETFs higher.
"Some stocks, especially the severely oversold high-quality technology names I discussed in
many articles around their lows last fall, probably made long-term bottoms but should continue providing buying opportunities on pullbacks and dips," wrote
Victor Dergunov, SA Investing Group author of
The Financial Prophet. Check out the article,
The 'Fed Pivot' Is Coming - The Bottom Is Close. His "
All-Weather Portfolio" is
up by 17% YTD, with its technology segment boosting returns,
advancing about 25% since the beginning of the year.
Go deeper: With no fresh news about a banking contagion, market participants have appeared to have
regained a risk-on mood. The tech bull market also hasn't been limited to growth stocks, with recent gains over the past week in financials and energy. Meanwhile, bigger concerns for the housing sector haven't materialized, with
pending home sales rising for a third straight month in February and
mortgage applications increasing over the past week. (
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