Big Tech's Rally Continues Amid Recession Worries and AI Mania
The Nasdaq 100 Index jumped over 3% last week, driven by the 'Magnificent Seven' tech stocks - Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, and Nvidia - which have accounted for 84% of the Nasdaq 100's $4 trillion growth in market valuation in 2023. Investors are piling money into the much-hyped artificial intelligence trade, which is feeding the concentration of market gains into only a few companies. Meanwhile, retail names in both the consumer discretionary and staples sector have gotten whacked in May as former areas of strength once again collapse.