Oil Rally Fuels Energy Sector's Outperformance Over Tech, Challenges 2023 AI Dominance
Portfolio Pulse from Piero Cingari
Energy stocks have outperformed tech stocks over the past three months, driven by a 30% rise in WTI-graded crude oil since mid-June. This is due to production cuts by Saudi Arabia and Russia, and a robust U.S. economy. The Nasdaq 100 index, represented by the Invesco QQQ Trust, showed a 39% increase in the first half of the year, largely due to the AI boom. However, in the last three months, the index has been flat, while energy stocks, represented by the Energy Select Sector SPDR Fund, have risen by 19%. The largest energy stock, Exxon Mobil Corp., has outperformed the largest tech stock, Apple Inc.
September 18, 2023 | 4:46 pm
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NEGATIVE IMPACT
Apple Inc., the largest tech stock, has been outperformed by Exxon Mobil Corp., the largest energy stock, over the past three months.
The underperformance of Apple Inc. compared to Exxon Mobil Corp. over the past three months indicates a slowdown in the tech sector, which could impact investor sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Invesco QQQ Trust, which represents the Nasdaq 100 index, has shown a flat performance over the past three months.
The flat performance of the Invesco QQQ Trust over the past three months indicates a slowdown in the tech sector, which could impact investor sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Energy Select Sector SPDR Fund, which represents energy stocks, has risen by 19% over the past three months.
The rise in the Energy Select Sector SPDR Fund over the past three months indicates a strong performance in the energy sector, which could attract more investors.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Exxon Mobil Corp., the largest energy stock, has outperformed Apple Inc., the largest tech stock, over the past three months.
The outperformance of Exxon Mobil Corp. over Apple Inc. over the past three months indicates a shift in investor preference from tech to energy stocks.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80