These 3 giants could keep the stock market rally going in 2021



Stocks had a largely calm day on Thursday, with the main market benchmarks trading on either side of the mark unchanged as investors paused after a huge rally to start the year. At the end of the day, the Dow Jones Industrial Average (DJINDICES: ^ DJI) had fallen below its all-time high on Wednesday. But the S&P 500 (SNPINDEX: ^ GSPC) and Nasdaq Composite (NASDAQINDEX: ^ IXIC) managed to post wins that took them further into uncharted territory.


Percent change

Point change




S&P 500

+ 0.03%


Nasdaq Composite

+ 0.55%


Data source: Yahoo! Finance.

Momentum strategies have performed extraordinarily well over the past year, and investors still seem quite happy with what they know. Market leadership came from the technology sector for a long time, and today, is gaining in Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), and Intelligence (NASDAQ: INTC) has played the biggest role in raising the Nasdaq and keeping stocks at or near record levels.

Apple stays healthy

Apple shares rose nearly 4% on Thursday, bringing its market-leading market cap to $ 2.3 trillion. The tech giant has more than doubled since last March and shows no signs of slowing down.

There is always news about Apple, and today was no exception. Stock analysts had a number of positive things to say, including that the company’s first line of 5G-capable smartphones appears to be selling well and its planned foray into electric vehicles could be best achieved through a partnership rather than an internal one. production. Morgan stanley made a small increase in the target price from $ 8 to $ 152 per share, and reports of a virtual reality headset have fueled interest in Apple.

Image source: Getty Images.

Many investors are increasingly worried about the pace of Apple’s rise. The iPhone maker has managed to overtake most of its big tech rivals, even though revenue growth has slowed significantly. Without fundamental business growth, they argue, Apple could easily abandon its earnings.

So there will be a lot at stake next week when Apple announces its results. At that point, investors will have a better idea of ​​whether the iPhone 12 is doing as well as expected. The disappointment could lower the title, but other good news would give Apple more room for improvement.

A good day for semiconductor stocks

Elsewhere, NVIDIA shares climbed nearly 5%, while Intel saw a 6% increase. Strong sentiment in the semiconductor space has helped lift these industry giants.

Intel’s hike was a bit odd as it came after the premature release of its fourth quarter results just minutes before trading ended. The chipmaker reported sales down 1% from last year’s levels, but crushed the company’s previous forecast. Likewise, earnings per share were better than expected, remaining stable on an adjusted basis. Intel also gave encouraging indications for the first quarter of 2021. Investors are optimistic that new CEO Pat Gelsinger will accomplish what its predecessor failed to completely restore Intel to its former glory.

Still, gains from NVIDIA and other semiconductor stocks show investors are generally excited about the entire tech industry. With high demand for electronic devices, chipmakers can be assured of consistent ordering activity. Even though NVIDIA, Intel, and others are fighting for supremacy, there is currently enough appetite for semiconductors for every business to thrive.

Technology can continue to climb

As long as people want the latest electronics available, there will be room for Apple and semiconductor stocks to continue to rise. The valuation concerns are justified, but it is impossible to predict when the markets might decide to correct their recent uptrend. Until then, these three stocks could play a decisive role in continuing to push the market higher in 2021.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.



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