Stock markets for 2024 shook off the profit-taking earlier in the year to regain 2023’s momentum. The S&P 500 (SPY) and Dow Jones both traded at record highs, led by the technology sector. Taiwan Semiconductor (TSM), Broadcom (AVGO) after the VMware acquisition, Apple (AAPL), and SMCI are among the stocks to watch.
TSM, which manufactures chips for customers like Advanced Micro Devices (AMD) and Nvidia (NVDA), set the bullish tone for tech. Its next milestone price is $125, levels not seen since 2021. The firm expects strong growth in 2024 as production for the 3-nanometer process accelerates.
The tech sector accounts for 30% of the S&P. Apple is a key component for the Dow. Its race back toward $200 will send both indices to new all-time highs.
On the S&P 500, the top returning stocks excluding technology by YTD return include Travellers (TRV), up 11.1%, Allstate (ALL), up 10.6%, Merck (MRK), up 9.1%, and O’Reilly Automotive (ORLY), up 8.2%.
The worst-performing stocks include SolarEdge Technologies (SEDG), down by 26.2%, Enphase (ENPH), losing 21.6%, and Albemarle (ALB).
ALB stock enjoyed the Santa Clause December 2023 rally. Profit-takers quickly sold the stock nearly daily. They are bearish on lithium prices as EV demand decelerates. The transition from gas-powered vehicles to EVs will stall as affordability for the latter without tax credits weakens demand.
