Indexes Hit New Highs as Investors Rotate to Semiconductors and Next-Tier Tech Names
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On Monday, the Nasdaq and S&P 500 indexes hit 52-week highs, yet the "Magnificent Seven" mega cap tech stocks all declined. This is extremely rare.
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The PHLX Semiconductor Index reached a record high without any boost from Nvidia, an AI stock that has soared over 200% this year.
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With 2023 approaching, investors are anticipating new market leaders to take over from the "Mag 7" stocks that dominated returns in 2022.
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Market breadth on Monday was strong, with most Nasdaq and S&P stocks rising, offsetting the drag from the "Mag 7" declines.
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Semiconductor stocks saw big gains, with the PHLX index up over 54% year-to-date. Investors seem to be rotating into the next tier of tech stocks.