- The rally in US stocks this year has surprised even Wall Street veterans after a dismal 2022 performance.
- The S&P 500 gained nearly 9% this year, mainly on hopes of easing inflation.
- Tesla, Catalent and NVIDIA The benchmarks are the top three preperforming stocks on the US stock index.
After a dismal performance for US stocks in 2022, many Wall Street experts expect more pain for the market this year. But they have done so well in the initial stages that even long-term investors have been taken aback.
“I think the upside took a lot of seasoned traders by surprise, including some old fogies like me,” trading legend and UBS floor director Art Cashin told CNBC.
January is a month when investors typically stay down from higher-risk assets, so the optimism in the market was “strange to see,” according to Wells Fargo equity strategist Anna Han.
The benchmark S&P 500 US stock index is up more than 6% so far in 2023. It rose mainly due to expectations that cooling inflation will allow the Federal Reserve to hold back on its aggressive interest rate hikes, which typically weigh on asset prices and economic growth.
Here are the best-performing stocks on the S&P 500 this year as of Thursday’s close, and what may have contributed to their rise.
1. Tesla is leading the pack with a 68.3% gain, as investors warm to tech stocks again. The Elon Musk-led electric-vehicle maker has enjoyed a sales boom in China thanks to strong fourth-quarter results, news of expanded EV tax credits and price cuts.
2. Catalent 59.9%, thanks to reports that life sciences giant Danaher is interested in taking over the New Jersey drugmaker. It beat revenue expectations, though it missed earnings in this month’s quarterly earnings call.
3. Nvidia has increased by 52.9%. The graphics chip specialist is well placed to benefit from the ChatGPT craze, as its technology is found in devices running artificial-intelligence tools and could play a key role in AI development. Investors looking to get into the emerging technology will be paying attention.
4. Align technologyThe leading maker of Invisalign tooth straighteners is up 52.4%. Shares soared 27% in February after reporting better-than-expected fourth-quarter earnings. Some analysts believe pent-up demand from China’s reopening could boost the company’s shipments this year.
5. Warner Bros. Discovery 51.6% has increased. It decided in early February to abandon its plans to consolidate its streaming services and keep Discovery+ as a standalone platform. The change in strategy was meant to avoid losing customers who did not want to pay a premium price to watch other content.
6. Royal Caribbean has increased by 48.8%. Some analysts expect a more upbeat year for cruise stocks as the pandemic spurs demand.
7. Meta Platforms 47.9% has increased. Facebook parent stock is doing its best in a decade after CEO Mark Zuckerberg hailed 2023 as the “year of efficiency” with a round of cost-cutting and share buybacks.
8. Monolithic Power Systems has increased by 44.4%. The chipmaker’s stock is already heading into 2023, and rallied 10% on Wednesday after its fourth-quarter earnings beat Wall Street expectations and it increased its quarterly dividend.
9. Carnival 43.1% has increased. Like others in the cruise and hotel industries, it’s looking to potentially benefit from consumer spending on experiences this year.
10. Norwegian Cruise Line Has seen an increase of 38.2%.
Source: markets.businessinsider.com
