Tech Stocks Soar with AI-Driven Momentum
The Nasdaq Composite, heavily weighted towards tech stocks, experienced its best start to a year since 1983, rising 32% in the first half of 2023. The surge in tech stocks was fueled by the growing interest in artificial intelligence (AI), with investors flocking to companies like Nvidia, Tesla, and Meta Platforms. However, some analysts caution that the strong rally may not continue in the second half of the year and advise investors to be selective in AI-related stocks. The tech sector also benefited from the Federal Reserve's easing of its monetary-tightening campaign, as investors sought alternative options to savings accounts.