{"id":38988,"date":"2023-07-22T04:13:11","date_gmt":"2023-07-22T08:13:11","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/tesla-and-nvidias-gains-arent-the-only-thing-fueling-the-stock-markets-rally\/"},"modified":"2023-07-22T04:13:13","modified_gmt":"2023-07-22T08:13:13","slug":"tesla-and-nvidias-gains-arent-the-only-thing-fueling-the-stock-markets-rally","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=38988","title":{"rendered":"Tesla and Nvidia’s Gains Aren’t the Only Thing Fueling the Stock Market’s Rally"},"content":{"rendered":"
\n
<\/p>\n
<\/p>\n<\/figure><\/div>\n

When do three and 10 add up to 18? In 2023\u2019s rally.<\/p>\n

As of Thursday\u2019s close, the
\n S&P 500
\n had climbed just over 18% since the start of the year, nearly reversing 2022\u2019s brutal bear decline of 19.4%. Yet despite all the differences in the market this year and last, one thing is the same: The S&P 500\u2019s performance hinged on just a handful of days.<\/p>\n

\n

At this point, plenty of investors are aware that Big Tech stocks have done almost all the heavy lifting in terms of the market\u2019s 2023 gains. While that bullishness has finally started to spill over into other stocks, many are worried that the market\u2019s momentum continues to be fragile, as it\u2019s carried on the back of a narrow group of winners.<\/p>\n

\n Tesla
\n (ticker: TSLA),
\n Nvidia
\n (NVDA),
\n Meta Platforms
\n (META),
\n Apple
\n (AAPL),
\n Microsoft
\n (MSFT),
\n Alphabet
\n (GOOGL), and
\n Amazon.com
\n (AMZN) are the seven tech giants.<\/p>\n

Yet this year\u2019s rally not only depends on a few big winners, but a fraction of trading days. As DataTrek Research co-founder Nicholas Colas writes, out of 137 trading days in 2023, the S&P 500\u2019s double-digit gain comes down to just 10 days, when bullishness was driven by three main themes.<\/p>\n

The 10 best trading days of 2023 have delivered a total price return of 17.4%, or 96% of the S&P 500\u2019s year-to-date gains, Colas notes.<\/p>\n

In fact, the line between boom and bust is similarly slim when looking at those 137 days as a whole: 74 have been up days for the S&P 500, versus 63 down. That means there have been just 11 more up days than down this year, and the price return for those 11 best days, equal 18.8%\u2014more than this year\u2019s total gains.<\/p>\n

Nor is that an anomaly: Last year\u2019s bear-market losses were attributable to just five trading days, which \u201cwere a microcosm of the year as a whole, capturing the market\u2019s worries about rising prices, the Fed\u2019s unpredictable attempts to rein them in, and the difficulty in predicting near-term corporate profits.\u201d<\/p>\n

Viewed through that lens, investors only really need five to 10 more up days than down in the remaining 113 trading days to keep the rally going, Colas argues.<\/p>\n

So far, the 10 big bull days have come via three catalysts: Proof that the U.S. labor market is resilient in the face of cooling inflation, Big Tech earnings beats, and the combined public- and private-sector responses that quashed the March banking crisis.<\/p>\n

That said, the market certainly has gotten a lot of mileage out of these positive readings, meaning they may be mostly priced in at this point. That has left some to argue that we need new reasons to keep pushing higher, be it better-than-expected earnings or more enthusiasm about artificial intelligence.<\/p>\n

Colas agrees. He notes that in order for the S&P 500 to notch a few more \u201cbest days\u201d in the second half of the year, we\u2019ll need Big Tech to keep reporting blockbuster results: Not only do they account for nearly 40% of the index, but it could breathe new life into AI optimism. The Federal Reserve could also do its part, as investors would \u201calmost certainly\u201d rejoice whenever the central bank finally \u201csignals it is happy with the pace of declining inflation.\u201d<\/p>\n

Still, he concludes that those waiting for it to all fall apart may be too gloomy in light of the facts. \u201cThe year\u2019s market internals\u2014slightly more up days than down\u2014fit the classic definition of a bull or at least bull \u2018ish\u2019 market.\u201d<\/p>\n

And so far that\u2019s been good enough.<\/p>\n

Write to Teresa Rivas at teresa.rivas@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly reversing 2022\u2019s brutal bear decline of 19.4%. Yet despite all the differences in the market this year and last, one thing is the same: […]<\/p>\n","protected":false},"author":1,"featured_media":38989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-38988","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nTesla and Nvidia's Gains Aren't the Only Thing Fueling the Stock Market's Rally | iFintechWorld<\/title>\n<meta name=\"description\" content=\"When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=38988\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tesla and Nvidia's Gains Aren't the Only Thing Fueling the Stock Market's Rally | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=38988\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-22T08:13:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-22T08:13:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690013591_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=38988#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=38988\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Tesla and Nvidia’s Gains Aren’t the Only Thing Fueling the Stock Market’s Rally\",\"datePublished\":\"2023-07-22T08:13:11+00:00\",\"dateModified\":\"2023-07-22T08:13:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=38988\"},\"wordCount\":625,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=38988#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=38988\",\"url\":\"https:\/\/ifintechworld.com\/?p=38988\",\"name\":\"Tesla and Nvidia's Gains Aren't the Only Thing Fueling the Stock Market's Rally | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-22T08:13:11+00:00\",\"dateModified\":\"2023-07-22T08:13:13+00:00\",\"description\":\"When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=38988#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=38988\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=38988#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tesla and Nvidia’s Gains Aren’t the Only Thing Fueling the Stock Market’s Rally\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tesla and Nvidia's Gains Aren't the Only Thing Fueling the Stock Market's Rally | iFintechWorld","description":"When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=38988","og_locale":"en_US","og_type":"article","og_title":"Tesla and Nvidia's Gains Aren't the Only Thing Fueling the Stock Market's Rally | iFintechWorld","og_description":"When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly","og_url":"https:\/\/ifintechworld.com\/?p=38988","og_site_name":"iFintechWorld","article_published_time":"2023-07-22T08:13:11+00:00","article_modified_time":"2023-07-22T08:13:13+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690013591_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=38988#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=38988"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Tesla and Nvidia’s Gains Aren’t the Only Thing Fueling the Stock Market’s Rally","datePublished":"2023-07-22T08:13:11+00:00","dateModified":"2023-07-22T08:13:13+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=38988"},"wordCount":625,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=38988#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=38988","url":"https:\/\/ifintechworld.com\/?p=38988","name":"Tesla and Nvidia's Gains Aren't the Only Thing Fueling the Stock Market's Rally | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-22T08:13:11+00:00","dateModified":"2023-07-22T08:13:13+00:00","description":"When do three and 10 add up to 18? In 2023\u2019s rally. As of Thursday\u2019s close, the S&P 500 had climbed just over 18% since the start of the year, nearly","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=38988#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=38988"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=38988#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Tesla and Nvidia’s Gains Aren’t the Only Thing Fueling the Stock Market’s Rally"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/38988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38988"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/38988\/revisions"}],"predecessor-version":[{"id":38990,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/38988\/revisions\/38990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/38989"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}