Tech Is Set for One of Its Best Quarters, Thanks to the Fed

Nasdaq 100 index is up over 17% in the first quarter
Global tech stocks too have scope to outperform banks

WATCH: Nour Al Ali, Bloomberg Markets Live Editor, says money markets are still convinced the Fed, ECB and BOE are going to cut rates this year.Source: Bloomberg

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By Nour Al Ali and Valerie Tytel

March 30, 2023 at 11:13 AM UTC

This article is for subscribers only.

The Nasdaq 100 is heading for its second-best quarter in a decade — and it has the Federal Reserve’s recent largess to thank for its gains.

The tech gauge soared 17% in the first quarter, buoyed by the Fed’s loosening of its balance sheet after Silicon Valley Bank’s collapse earlier this month led to worries about monetary conditions tightening. In the past decade, there’s only been one better quarter for the Nasdaq: between April and June 2020, when it rose more than 30% as, again, the Fed was pumping liquidity. Then it was to combat the effects of the pandemic.