- CNBC – The industry that opposed Trump the most has performed best in his first 100 days
Despite loud opposition from tech firms to many of Trump’s policies, investors have hoisted many tech stocks to all-time highs since the election. Shares of Amazon, Apple, Facebook, Microsoft and Alphabet have hit one all-time high after another in 2017. The Nasdaq 100 has hit higher levels than ever, and the IPO market hit a seven-quarter high in terms of capital raised, according to Renaissance Capital.
- The Financial Times – Nasdaq Composite breaches 6,000 for the first time
Fang stocks — Facebook, Amazon, Netflix and Google — lead the charge
The Nasdaq Composite breached the 6,000 level for the first time on Tuesday and extended its double -digit gain for the year as investors focus on owning companies with strong growth prospects. The tech-heavy benchmark climbed as much as 0.7 per cent to 6,022 early in the day after closing at a record high in the previous session. Renewed appetite for technology stocks and a rally in the so-called Fang stocks — Facebook, Amazon, Netflix and Google — has spurred a near 12 per cent gain for the Nasdaq in 2017, well ahead of the S&P 500’s rise of 6.5 per cent. Within the main S&P 500 sectors, technology has gained nearly 14 per cent in 2017, well ahead of other big industry groups. Tech has prospered as investors have sought fast-growing companies against the backdrop of questions over the outlook for the US economy and whether the Trump administration can push fiscal stimulus measures through Congress.
Comment
The first chart below shows YTD market capitalization gains through April 24. The green line shows the S&P 500’s market cap grew by $1.19 trillion, the orange line shows FAANG stocks grew by $392 billion and the blue line shows Apple grew by $140 billion.
The next chart shows Apple’s weight in the S&P 500 in orange and its contribution to the S&P 500’s returns in blue.
Apple alone has accounted for 11.71% of the S&P 500’s year-to-date return. Put another way, Apple returned 0.79% of the S&P 500’s 6.72% return for the quarter.
The chart below shows the same measures for FAANG stocks. They accounted for 32.76% the of the S&P 500’s year-to-date return. Put another way, FAANG stocks returned 2.20% of the S&P 500’s 6.72% year-to-date return.
