AI-Powered Tech Boom Fuels 2023 Stock Market Rally

By Felix Richter

Despite banking jitters, stubbornly high inflation and lingering recession fears, the U.S. stock market rebounded in 2023, recovering most of the losses incurred in the 2022 market rout. Having been the main driver behind the previous year’s downturn, the tech sector returned to its more familiar role as market motor in 2023. Fueled by excitement over the potential of AI, companies such as Microsoft, Alphabet and Nvidia saw their share prices surge over the past 12 months, pulling the market out of its post-Covid funk almost single-handedly.