• The focus of equities has shifted from buzzwords like “crypto” and “metaverse” to “AI.”
• Despite rising interest rates and fixed-income yields, equities have traded higher this year, with the Nasdaq up 35%, and the S&P 500 (SPX) up 12%.
• According to MacroScope, six of the top tech companies have 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).
Equity Pivot From Crypto to AI
The focus of equities has shifted from buzzwords like “crypto” and “metaverse” to Artificial Intelligence (AI). Despite rising interest rates and fixed-income yields, equities have traded higher this year. The Nasdaq is up 35%, and the S&P 500 (SPX) is up 12% yearly.
Market Caps Of Top Tech Companies
According to MacroScope, six of the top tech companies have 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).
Sustainability Of The Trend
The sustainability of this trend will be tested as the promise of future solid earnings growth is challenged going forward. MacroScope believes this enthusiasm for tech will eventually fade, as it has in the past.
Realized Losses Outpace Profits
Realized losses outpace profits amid market turbulence after Binance, Coinbase lawsuits from US Securities & Exchange Commission’s legal battles with Binance, Coinbase could reshape the crypto landscape.
Gas Usage For Stablecoins And NFTs On Ethereum Decline
Gas usage for stablecoins & NonFungible Tokens(NFTs) on Ethereum continues decline due to its high cost associated with transactions within its blockchain network