Q3 2023 Outlook: Time for Cyclicals to Shine
@Chris23:
Following a stellar start to 2023, the S&P 500 index has now recorded close to a 15% gain year-to-date. However, most of the rally has been concentrated in Large Cap US Tech stocks. The S&P 500 Ex-Information Technology Index is up less than 2% YTD, heavily underperforming the S&P. This underperformance can be attributed to the rise of Generative AI, with companies such as Nvidia, Meta and Tesla contributing to a significant portion of the gains in tech. Best-Performing Stocks of Q1 2023 | Morningstar Macroeconomic Update The US economy is showing no signs of recession despite echoes from the Fed maintaining its hawkish stance. The labour market remains extremely tight with the unemployment rate at 3.6% as of Jun 2023. Following this week’s mixed job data, traders will be looki