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Tech stocks took quite the tumble in 2022, but it looks like they're bouncing back, giving investors who weathered the storm a reason to smile.
With its sixth consecutive weekly rally, the Nasdaq Composite - home to many tech giants - rose 2% last week. The last time we saw such consistency was before the Covid-19 pandemic turned our world upside down in early 2020.
Wall Street got a big lift from Friday's strong jobs report for May and the Senate's approval of a debt ceiling bill on Thursday night. The bill keeps the U.S. from defaulting on its debt, which is a huge relief.
The prior week's gains were boosted by Nvidia's (NASDAQ: NVDA) impressive earnings report and a wave of optimism around AI technology. Last week, however, didn't have any standout news from the major tech players, but their shares continued to climb regardless.
Tesla took the lead out of all the Nasdaq heavyweights, surging 11% over the last four trading sessions. After taking a big hit in 2022, Tesla's (NASDAQ: TSLA) shares have made a remarkable turnaround, skyrocketing 74% this year.
Tesla, alongside Nvidia - which has seen a 169% surge this year - are the superheroes that have propelled the Nasdaq to a 27% rise in 2023, leaving the S&P 500 and Dow Jones Industrial Average in the dust.
The Nasdaq took a 33% nosedive - the worst since the financial crisis. Fearing inflation and rising interest rates had investors running for the hills. While it's making a commendable comeback, it's still about 18% shy of its all-time high.
Apple expected to launch a virtual reality headset on Monday
Get ready to step into the future as Apple (NASDAQ: AAPL) gears up to reveal its first virtual reality headset next week. It will be the first significant product line since the Apple Watch was launched in 2014.
Rumor has it this gadget will boast high-definition screens right before your eyes. But that's not all, as high-tech cameras on the device could create a 'passthrough' or mixed reality experience, allowing you to interact with the real world.
Apple's Wearable, Home, and Accessories revenue surpassed $41 billion in fiscal 2022. Apple AirPods generates $10 billion in sales yearly, while the Apple Watch rakes in between $14 billion and $18 billion annually.
In fiscal 2022 the company sold:
53.9 million Apple Watches
82 million AirPods
13.6 million HomePods
Will the VR headset, which might be priced at a lofty $3,000, unlock another multi-billion-dollar revenue stream for the tech giant?
Macro-data to watch out for
This Wednesday, we're set to get the scoop on the U.S. trade deficit from the U.S. Department of Commerce folks. If forecasts hit the bullseye, we could see the trade gap in April stretch to a hefty $75 billion, up from March's $64.2 billion. The trade deficit is like the thermometer of the economy – a shrinking deficit can give our nation's GDP a nice little boost.
The Federal Reserve is due to dish out the details on consumer credit this week, giving us a glimpse into U.S. consumer borrowing in April. In March, consumers added $26.5 billion to their borrowing, zipping along at the fastest pace we've seen in four months. Credit card balances leaped too, jumping up by 17.3%.
The March report indicates that consumers haven't been shy about spending, despite borrowing costs climbing up the ladder due to the Federal Reserve's interest rate hikes. Expect consumer borrowing to dial back a bit in April, likely landing around the $20 billion mark.