Investment Review - March 2023
- After January’s gains, the major U.S. stock indices retreated in February. The Dow Jones Industrial Average declined -4.2%, the S&P 500 dropped -1.1% and the Nasdaq Composite fell -2.6% during the month. The S&P and the Nasdaq are still in positive territory for the year, but the Dow shows a slight loss.
- The divergence in the year-to-date price change between the Dow, the S&P and Nasdaq can be explained by the performance of a handful of technology and related stocks which have rebounded from a difficult 2022. The appreciation in the Big 8 (AAPL, AMZN, GOOGL, META, MSFT, NFLX, NVDA and TSLA) have accounted for nearly all of the gain in the S&P 500 for the year, so far. Similarly, the gain in the Nasdaq has been propelled by its representation in these stocks. Meanwhile, the Dow’s relative underperformance can be attributed to its significantly less exposure to these names.
Key Investment Statistics
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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