Quick Take
- Despite rising interest rates and fixed-income yields, equities have traded higher this year. However, the sustainability of this trend will be tested as the promise of future solid earnings growth is challenged going forward.
- The Nasdaq is up 35%, and the S&P 500 (SPX) is up 12% yearly.
- The focus of equities has shifted from buzzwords like “crypto” and “metaverse” to “AI.”
- According to MacroScope, “Six of the top tech companies with a combined market cap of $8.4 trillion or 23% of the S&P 500 trade on price-to-earnings (PE) ratios between 29 (Apple) and 66 (Tesla)”.
- MacroScope believes this enthusiasm for tech will eventually fade, as it has in the past.
The post Equities pivot from crypto, metaverse to AI appeared first on CryptoSlate.
