Big tech has obviously been a major mover for the stock market in 2023. With third quarter earnings forthcoming, there should be plenty of opportunities for broad-based ETF as well as single-stock ETF plays.
Amid high inflation, interest rates, and geopolitical risk swirling the capital markets these days, investors can always turn to big tech for a dose of positivism in the markets.
“With the list of stock-market worries growing seemingly by the day, investors looking to earnings season for a dose of good news are hanging their hopes on a familiar group: Big Tech,” Bloomberg noted.
That strategy is warranted given that the Nasdaq-100 is up almost 40% despite the recent pullback that’s characteristic of an August and September slowdown. Fundamentally, big tech has pushed aside the post-pandemic slump and is reestablishing its market dominance again in 2023.
“After slashing thousands of jobs to cut costs, the biggest US technology and internet companies are pumping out profits similar to those generated two years ago when the pandemic sent sales of digital services and electronic devices soaring,” Bloomberg added. “The expectation now is that they’ll help pick up the slack from industries like energy and health care that are still mired in an earnings slump.”