Stock Market Themes: AI Frenzy and Bank Collapses in First-Half

The first half of 2023 saw unexpected market themes, including a $5 trillion AI-fueled tech rally, a banking crisis in Europe and the US, and a world-beating rally in Japanese stocks. Megacap tech firms like Apple and Microsoft have driven gains in the S&P 500, while Tesla has more than doubled in value this year. High inflation and interest rates continue to dominate investor sentiment, and China's economic recovery is faltering. Looking ahead, investors may need to look harder for the next winning bet, with energy and banks being attractively valued, according to Barclays Private Bank's chief market strategist.