Bet Big on Big Tech in 2024

U.S. equity markets defied expectations in 2023, with the S&P up 24% for the year. But while the stock market’s performance was good in 2023, it was especially good for large-cap tech stocks.

According to Morningstar’s Tom Lauricella and Lauren Solberg, tech stocks posted a huge year, surging 59.1% in 2023, resulting in their best performance since 2009.

“2023 turned into one of the biggest years for stock market performance in the past decade,” Lauricella and Solberg wrote. “It was especially good for the kinds of mega-cap technology stocks and other growth companies that suffered the biggest losses in the 2022 bear market.”

In particular, Nvidia Corp. (NVDA) had a great year. After its value was cut in half in 2022, the semiconductor chip designer’s stock rallied 239% during the year. Morningstar attributed the massive spike to “the emergence of artificial intelligence technologies” reshaping the tech sector.

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