Tech is hot on Friday, and that continues a trend for 2023. What is old is new. It’s been a choppy week, with the S&P 500 down 2.5%. Despite this, the index is still up 1.6% for the year. This year’s leadership looks like the opposite of 2022 and very much like 2021. Growth leads, defensive sectors lag. Sectors In 2023 Semiconductors Up 8.5% Communications Services Up 6.9% Consumer Discretionary Up 5.1% Technology Up 2.8% Health Care Down 2.1% Consumer Staples Down 3.4% Let’s Get The Band Back Together It Is not just that old growth stocks are back, but the leadership of old growth stocks are back. Microsoft is the only holdout. Large Cap Growth Stocks In 2023 NVIDIA Up 14.8% Meta Up 13.2% Amazon Up 11.6% Alphabet Up 5.6% Apple Up 4.2% Tesla Down 3.3% Microsoft Down 3.2% Tech Is up Friday The mainstream press will focus on cutting 12,000 jobs at Alphabet (6% of the total workforce there), but will be less likely to note that the company, like other big tech companies, went on a hiring spree during the pandemic. There is a much lower growth prospect ahead. Alphabet is up 4% pre-opening because the job cuts will 1) help prop up revenue, 2) make Federal Reserve officials happy because they want tougher working conditions.
https://www.cnbc.com/2023/01/20/tech-stocks-are-back-the-market-now-is-starting-to-look-like-it-did-in-2021.html The market now looks like it will in 2021