Sunday 09 April 2023

*UKHotViewsExtra* Larger tech stocks benefit from banking turmoil

Share price tableWe are now a quarter of the way into what is turning out to be another volatile year for equities, albeit one that is so far favouring the dominant tech players.

In fact, the US tech-focused Nasdaq Composite index gained almost 17% quarter-on-quarter (QoQ) to 31 March, its strongest QoQ performance since the bounce-back from the early stages of the Covid pandemic in Q2 2020.

Strong performers included Intel (up 31.0% month-on-month (MoM) and 23.6% QoQ), Microsoft (up 15.6% MoM and 20.2% QoQ), Apple (up 11.9% MoM and 26.9% QoQ) and Amazon (up 9.6% MoM and 23.0% QoQ).

2023 chartAfter a bright January, UK tech indices and the more general FTSE 100 and 250 have stuttered however. The FTSE Software and Computer Services (SCS) index closed up 4.3% QoQ, whilst the broader FTSE 100 managed 2.4% QoQ and the FTSE 250 mid-cap just about broke even.

Indeed of the 140 or so tech stocks that we track across several markets, around half posted a share price decline in the month of March.

Why is the Nasdaq outperforming so strongly? Is this the start of another tech boom, so soon after the 2022 tech crash? And can it last?

hvxUKHotViews Premium readers can read more on how 2023 is shaping up to be another volatile year and what may yet be in store in Larger tech stocks benefit from banking turmoil

And if you would like to discuss subscription options, please contact Deb Seth.

Posted by Tania Wilson at '13:21' - Tagged: markets   macro