Marketbites: Nasdaq Closes Best First Half Since 1983
MARKET PERFORMANCE:
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Portfolio Manager Commentary:
Stocks rose Friday and technology names continued their staggering run to cap off a strong start to the year, and the best first half for the Nasdaq Composite since 1983. Mega-cap technology stocks responsible for a sizeable chunk of 2023′s market gains rose Friday. Dominant artificial intelligence chipmaker Nvidia jumped nearly 3.6%, bringing its yearly gains to more than 189%. Netflix added about 2.9%, while Meta Platforms, Microsoft and Amazon rose 1.9%, 1.6% and 1.8%, respectively. Apple gained 2.3% to close above a $3 trillion market cap.
Friday marked a pivotal day for investors, bringing the conclusion of the month, second quarter and first half. The last six months saw 2022′s beaten-down growth names make a broad comeback as the promise of artificial intelligence and hope of an end to the Fed’s rate campaign lifted major tech players to astonishing heights.
Despite these strong gains, some on Wall Street expect volatility in the second half and likely profit taking from investors that benefitted from the rally. This, coupled with changing technicals, could lead to sideways action, or a slight pullback in the S&P, said Anna Han, equity strategist at Wells Fargo Securities.
Chart of the Day:
The Supreme Court struck down the Biden administration’s plan to eliminate as much as $20,000 in federal student debt for millions of borrowers. The forgiveness plan would have wiped away an estimated $430 billion in loans from the government’s books. Once payments resume, the typical student-loan payment will be between $210 and $314 a month, according to a new report from Wells Fargo.
More than 43 million people collectively owe $1.6 trillion in federal student-loan debt as of March 31, according to the Education Department. The types of loans include Direct Loans, Federal Family Education Loans, and Perkins Loans. The overall amount reflects any outstanding principal and interest balances. About half of these borrowers owe less than $20,000.
Source: WSJ
What else is happening:
Goldman is looking for a way out of its partnership with Apple- read here
How to prepare for the resumption of loan payments - read here
The military recruiting crisis - read here
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