Tech companies continue to lead Wall Street

In both 2020 and 2021, the trend of most consumers to use more technological equipment has been noticed in the stock markets. In this time period, analysts reached a turning point where trends would radically change, moving from a mostly physical, face-to-face, to an increasingly digitized economy.

The main broker to quickly overcome the volatility of the early months of the pandemic was Amazon, followed by other NASDAQ listed companies on Wall Street. Despite the fact that last April we have experienced another period of volatility, analysts continue to affirm that the first to recover, due to the extreme profits they produce, will be technology companies, especially large transnationals that for years they lead all markets: Amazon, Apple, Facebook and Google.

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Software, social and entertainment in the lead

As for the technology companies that are leading the market, we can highlight at least 3 categories. Software, hand in hand with Microsoft, Social, hand in hand with Facebook, and entertainment, with Netflix and the like, which, however, in recent days have lagged behind the rest.

Although it is not a software development company, Tesla can certainly also be included in this group of the undisputed leaders of the NASDAQ, thanks to which the index could rally to all-time highs and break records that have never been hit by Wall Street’s biggest tech index before.

The current period of volatility would be being caused by multiple factors that increase uncertainty, one of them is the possible increase in taxes that would be presented and that increases the rates for investors with assets of more than one million dollars by up to 39.6%. . This has weakened risk appetite in some sectors, while increasing it in others, and has generated a correction in most markets in the United States and in cryptocurrencies.

Hardware steps on the gas on Wall Street with NVIDIA leading the way

For its part, despite the shortage of hardware parts that we have been suffering in our midst, the truth is that the demand and expectations continue to lift stocks from companies like NVIDIA and AMD, who step on the accelerator tracing volatility with relative ease.

Not so Intel, whose actions are still on the ground, marking an extremely linear trend that does not point to recovery, and Xilinx, a company that is dedicated to the manufacture and distribution of programmable logic devices that also shows a slight optimism, without actually defining an uptrend or downtrend, but resisting.

Tech companies are at an inflection point at the moment and depending on their response to new conditions and mainly their earnings, they could tip the balance in one direction or another for the North American stock market.