Megacap growth and tech stocks have powered robust gains on Wall Street this year, with big tech shares gaining safe-haven status for investors fearing a potential recession and volatility in the banking sector. The rally still has more room to run, according to strategists at Deutsche Bank. See: Are tech stocks becoming a haven again? ‘It’s a mistake,’ say market analysts.
The tech-focused Nasdaq-100 index
NDX,
-1.07%,
which tracks the top 100 nonfinancial companies listed on the Nasdaq Exchange including Apple Inc.
AAPL,
-1.44%,
Meta Platforms Inc.
META,
-1.40%,
Tesla Inc.
TSLA,
-3.51%
and NVIDIA Corp.
NVDA,
-2.64%,
last week ended the month at its highest level since August, and advanced more than 18% for the quarter, according to Dow Jones Market Data. That compares with a 7% quarterly gain for the broader S&P 500 index
SPX,
-0.31%
and a merely 0.4% increase for the Dow Jones Industrial Average
DJIA,
+0.26%.
Tech-related stocks have rebounded after a brutal 2023 that saw them bear the brunt of a broad market selloff. “So far, the rally has largely reflected an unwinding of underweight positioning,” wrote strategists led by Binky Chadha, Deutsche Bank’s chief U.S. equity and global strategist. “We see the next leg being driven by earnings beats and rising forward estimates on which there has been very little focus so far.” Chadha and his team said a pickup in global growth in the near-term and a peak in the U.S. dollar point to a sizable reboun …