The first half of 2023 is about to pass. Looking back at the performance of US stocks in the first half of the year, US stocks as a whole showed an upward trend. The NASDAQ and S&P 500 indices have also entered a “technical bull market” one after another.

Judging from the sector's performance,Against the backdrop of investors' optimism about artificial intelligence bursting and the Federal Reserve suspending interest rate hikes, the return of the king of technology stocks gave strong impetus to the rise in US stocks. Judging from earnings in the first half of the year, according to Wind data,As of June 16, the IT sector had the highest increase among all major sectors, with a cumulative increase of 52%. The optional consumer sector followed suit, with a cumulative increase of nearly 38%.

In the first half of the year, most of the gains in the US stock market were driven by cyclical growth stocks, particularly large technology stocks.

Logically, the reason behind this round of strong technology stocks is quite clear — the popularity fueled by the AI boom has prompted investors to pour into technology stocks with huge market capitalization such as Google and Nvidia, and bet on the strong balance sheets of technology companies, which will make them resilient in the face of a sudden downturn in the overall economy.

Excitement about the rapid development of generative artificial intelligence technology is a key factor driving the rise of large technology stocks.The biggest increase was unquestionably the “King of Sellers in the AI Gold Rush Era”$NVIDIA (NVDA.US)$, which has nearly doubled, and joined the “trillion dollar market capitalization club”$Meta Platforms (META.US)$,$Advanced Micro Devices (AMD.US)$It ranked second and third respectively in terms of growth, with cumulative increases of over 130% and 85%.

Editor/Somer