Some of the world’s top tech companies were driving stocks, as eight large-cap tech companies accounted for more than half of the S&P 500’s 7.3% gain, while Virgin Galactic jumped 9% in premarket trading.
Climbing back from a near-term low on May 12, the S&P 500 has come roaring back with a 7.3% gain through early July, largely driven by eight large-cap tech companies, that combined, accounted for more than half of the boost.
Earlier this year, investors were focused on buying shares of companies like banks and energy that would prosper if the U.S. economy continued its rapid recovery from the pandemic, The Street reported.
However, the tech gains show significant post-pandemic acceleration in growth, and investors are moving back toward the proven heavyweights in the field who have emerged as the new market leaders.
The eight companies on top are Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Facebook (FB), Netflix (NFLX), Alphabet-owned Google (GOOGL) and Tesla (TSLA).
Virgin Galactic CEO Richard Branson has won the billionaire space race, after completing a test flight on Sunday, which promises to open up the commercial space industry and make space tourism a viable business, CNN reported. Branson beat out the two other well-known competing billionaires into space, that of Amazon’s Jeff Bezos’ Blue Origin project and Tesla’s Elon Musk’s Space X.
Shares of the Virgin Galactic jumped 9% in premarket trading, CNBC reported. Shares have reportedly risen 107% year to date, as the company is now valued at nearly $12 billion.
Shares plunged to 7% in early trading after Virgin Galactic said it would sell up to $500 million in shares.
Big Chinese tech companies such as Didi Global (DIDI), Tencent (TME), and Alibaba (BABA) are falling out of favor. This is being driven by a problematic regulatory crackdown on overseas-listed companies. The new regulations will force the companies to report critically sensitive privacy data (according to Beijing, at least) to the government first.
Shares of Didi Global were down 5.28%. The stock has fallen nearly 20% since they went public on July 2. Shares closed at roughly $12 per share on Friday, which is $2 below its IPO price of $14, the equivalent of about $9.6 billion in lost market value.