Friday 12 January 2024

*UKHotViewsExtra* US tech surges in 2023 - whilst UK stocks stutter

If 2022 was the year when tech stocks fell to earth, then 2023 was the year in which they took flight once more, with the US tech-focused Nasdaq finishing the year up 43% and not far off its 2021 peak.chart

Interest rate increases during 2021 and 2022 took their toll on tech shares more than those of other sectors. Conversely market expectations of interest rate reductions make tech assets more attractive again.

And with the Federal Reserve indicating at its December meeting that it may not increase rates further, it looks like tech is set to benefit as we enter 2024.

But a closer look reveals that much of the Nasdaq’s buoyant 2023 performance was driven by Big Tech, prompting questions about whether this is a tech boom on the back of an improving economic outlook or Big Tech flexing its AI muscle and consolidating its market strength.hv

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Posted by Tania Wilson at '09:55' - Tagged: markets   macro