Tech stocks are outperforming their rivals by the most since the dot-com bubble
Tech stocks haven't outperformed their rivals this much since the dot-com bubble, according to one measure.
The tech-heavy Nasdaq Composite beat the Dow Jones Industrial Average by 9.3 percentage points in May.
That’s the biggest gap between the two indices since October 2001, according to Dow Jones data.
Tech stocks are outperforming broader benchmarks by the largest amount since the dot-com bubble burst in the early 2000s, according to one measure.
The Nasdaq Composite beat the Dow Jones Industrial Average by 9.3 percentage points in May, with the tech-heavy index racking up returns of nearly 8% thanks to Nvidia's stellar gains.
That's the biggest gap between the two stock-market gauges since October 2021, according to Dow Jones data that was cited by MarketWatch.
At that time, the Nasdaq was in the midst of a brief bear-market rally but still trading way below the then-all-time high it had hit in March 2000.
It would bottom out around a year later having fallen 740% from its peak.
Just as the index's late-1990s boom was fueled by the rise of the internet, an explosion of interest in artificial intelligence has powered techs' early-2023 gains.
Nvidia has emerged as a clear winner from the AI boom, racking up gains of nearly 160% year-to-date, with other mega-cap tech stocks like Meta Platforms and Tesla also surging in 2023.
Read more: Nvidia has AI to thank for entering the $1 trillion club
Read the original article on Business Insider
