The boys are back! After a difficult 2022 for tech stocks, Big Tech is back on track this year, driving stock market gains and dominating the major indexes. These mega-cap companies, which cover a wide range of industries, from retail and entertainment to microchips and banking, are now considered the bedrock of the modern economy and are best placed to ride any new digital revolution. Their resurgent outperformance is partly due to their clawback from the shocker of 2022, but it is also due to forecast-beating first-quarter earnings, the boom in cloud computing, and the excitement around a potential technological leap in AI. Although some analysts worry that these tech stocks may be overpriced and too expensive, it's hard for any investment portfolio to avoid them. Despite the concerns, their new year revival is a clear sign that Big Tech is still the only game in town and can weather any economic storm.

EQUITY

The stock market made a huge restitution as it recovered the week's earlier losses, with big tech leading the gain in its earnings season that saw Meta Inc. once again prove to be the name brand of social media. Other big tech companies, including Alphabet, Apple, and Microsoft, also reported strong earnings. Some believe it points towards underhanded quantitative easing by the Fed that saw its balance sheet rebound, although the numbers have subsided now.

GOLD

Gold prices fell for a third straight day due to strong US inflation and labour market data, which increased fears of more Federal rate hikes. The data suggested that inflation would remain high. However, gold may see increased demand later this year if the US slips into recession and the Fed pauses its rate hike cycle.

OIL

Oil prices are heading for a fourth consecutive monthly decline due to concerns over interest rate hikes and potential economic slowdowns, which have increased fears for energy demand. Additionally, the OPEC+ group stated that there is no need for further output cuts despite lower-than-expected Chinese demand.

CURRENCY

The US dollar rose as weaker-than-expected GDP growth for Q1 2023 is unlikely to deter the Fed from another hike next week. While the economy grew at a slower pace than anticipated, investors are focused on inflation data, with core personal consumption expenditure expected to stay high at 4.5% YoY.