Monday 22 May 2023

*UKHotViewsExtra* Tech is the winner as banking turmoil casts a long shadow

2023 chartRecent months have seen ups and downs on the markets, driven recently by concerns about the stability of the banking system following the collapse of tech specialist lender Silicon Valley Bank in March. But tech stocks have been the big winners, with the tech-focused Nasdaq Composite index up 21% since the start of 2023.

Tech stocks are benefitting from the belief that the Federal Reserve will pause and perhaps even halt altogether further rises in interest rates, as evidence mounts that US inflation is coming under control and the world's largest economy is slowing.

And strong earnings data in the latest round of Big Tech quarterly updates has compounded investor confidence in the sector.

However, this is not yet the start of another tech boom, with much of the market growth restricted to just a handful of big-name stocks.

hvUKHotViews Premium readers can read more on how tech is turning into the sector to watch in Tech is the big winner as banking turmoil casts a long shadow.

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

Posted by Tania Wilson at '09:49' - Tagged: markets   macro