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Chart of the week: Tech stocks in the face of adversity

The tech-heavy Nasdaq has continued to ride AI fervor to new record highs. Semiconductors in particular have benefitted from the AI trade of late, propelling tech stocks higher. This has occurred despite a myriad of risks to the tech trade, including relatively expensive stock prices and worries about the ability to monetize the massive AI CapEx. That's in addition to worries about inflation and other factors that market bears believe could derail the broad market.
Chart is described in the text above
Source: FactSet, as of May 14, 2026. Index values set at 0 beginning January 1, 2026.

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The S&P 500® Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent US equity performance. All indexes are unmanaged, and performance of the indexes includes reinvestment of dividends and interest income, unless otherwise noted. Indexes are not illustrative of any particular investment, and it is not possible to invest directly in an index.

The technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic condition.

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