Top 20 Tech Stocks to Buy as Nasdaq Soars Amid Cooling Inflation
Stocks on Wall Street extended their year-long rally on Wednesday, with the S&P 500 and Nasdaq Composite both reaching fresh 52-week highs after data showed U.S. inflation continued to subside in June.
The lighter-than-expected CPI report raised hopes that the Federal Reserve will soon end its year-long rate hike cycle, boosting appetite for riskier assets.
The tech-heavy Nasdaq has been the top performer of the three major U.S. indices by a wide margin so far in 2023, surging 33% year-to-date.
The ongoing rally has been fueled by shares of the mega-cap tech companies, with Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) all posting triple-digit gains thus far, while Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) are also up solidly on the year.
The much awaited U.S. Labor Department report revealed that U.S. consumer prices rose 3.0% in the 12 months through June. It was the smallest year-on-year increase since March 2021 and followed a 4.0% advance in May.
Core CPI, which excludes volatile food and energy prices, eased to 4.8% on an annual basis last month, moderating from a 5.3% increase in May. That was also the smallest annual gain in more than two years.
Given the downward trend in inflation, the market is sensing the Fed is getting closer and closer to the end of its current rate hiking cycle, which began in March 2022 and saw CPI peak at 9.1% last summer.
While the U.S. central bank is still expected to raise rates by 25 basis points at its policy meeting later in July, traders are betting that this month’s move will be the last and final one for the time being.
At the time of writing, I remain long on the S&P 500, and the Nasdaq 100 via
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