A handful of large US technology companies have powered the market higher this year, driven by enthusiasm that artificial intelligence will lead to significant gains in revenue and profits.
The market recovery began late last summer despite headlines and investor sentiment still being gloomy: “bull markets climb a wall of worry.”
The robust labor market and resilient households have powered economic growth in 2023.
If the economy continues to advance, we expect the rally to broaden to other asset classes such as small cap, value, and foreign equities, though the future direction of the economy is still uncertain.