S&P 500 recap for 2023: Travel soars, AI and tech stocks thrive, while FMC, Enphase, Dollar General, Pfizer, and Moderna confront difficulties
U.S. stocks had a poor day on the final trading day of 2023, with the S&P 500 falling 0.3%. Nevertheless, the poor day had no effect on the year’s results because in 2023 the index surged by 24%.
Researchers examine the S&P 500 firms that have made the biggest gains and losses of the year as the last trading day of 2023 draws to a close. study identified the top gainers and losers in the benchmark index for the year using stock-price data as of Friday’s market closing.
Tech stocks saw significant growth in this year, particularly in everything associated with artificial intelligence (AI). As artificial intelligence (AI) emerged as Wall Street’s “next big thing” in 2023, demand for AI products skyrocketed. Some of the S&P 500’s best-performing equities this year have benefited from this trend.
Nvidia Corp. (NVDA) gained more than any other firm from the AI boom.
The stock saw the biggest percentage growth in the S&P 500 for the year, rising more than 254%, far ahead of the next biggest gainer. The chipmaker is now the sixth most valuable U.S. firm after its market valuation surpassed $1 trillion.
The only apparent hiccup in Nvidia’s trajectory occurred in October when the administration of President Joe Biden imposed new export restrictions to China, a move Nvidia claimed would have an impact on its operations.1. The business unveiled a microprocessor this week that complies with export laws.
Despite difficulties in 2023, Facebook’s parent company Meta Platforms Inc. (META) saw an over threefold increase in the price of its stock this year.
Similar to Nvidia, the corporation benefited from AI, but the primary catalyst for the euphoria around the massive social media platform occurred in February when CEO Mark Zuckerberg announced that 2023 will be Meta’s “year of efficiency” following a downturn in shares in 2022.2. The subsequent cost-cutting measures contributed to the meteoric rise of Meta shares.
Royal Caribbean Group
The travel sector benefited greatly from the lifting of COVID-19 lockdowns and other restrictions, particularly cruise companies that effectively closed for months during the pandemic.
Purging demand from tourists stranded at home due to the pandemic has boosted the shares of rivals Carnival Corp. (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH), including Royal Caribbean Group (RCL). Over 165% of the stock in Royal Caribbean increased, compared to over 132% growth in Carnival Corp. and approximately 69% gain for Norwegian at the conclusion of the year.
Technology may not seem like it would propel the expansion of a building supply company, but for Builders FirstSource Inc. (BLDR), it did.
The corporation boosted its digital expenditures throughout the year, with assistance from acquisitions and product mix as well.3. Furthermore, the price of its shares rose following S&P Dow Jones Indices’ statement earlier this month that it would be included in the S&P 500 on December 18.4
In 2023, BLDR’s stock increased by more than 155%.
Uber Technologies Inc. (UBER), like the cruise lines, was fortunate enough to be granted reopenings subsequent to the removal of COVID-19 restrictions. The ride-hailing business benefited from being included in the S&P 500 in mid-December, in addition to Builders FirstSource. The stock had increased by almost 142% in the year.
Those who fail
Even while the market as a whole rose, several stocks experienced the worst losses in 2023 due to factors like inflation, rising interest rates, and a decline in the demand for COVID-19 therapies.
This year, the shares of FMC Corp. (FMC) dropped by over 49%, wiping out most of the previous three years’ gains. In November, the company that makes agricultural chemicals saw a rise in its shares following the release of a strategy plan.5. In addition to releasing new goods, the corporation said that it would strategically assess its non-core assets.
The problems facing Enphase Energy Inc. (ENPH) were not exclusive to the “green” energy industry.
The manufacturer of solar power equipment was harmed by rising housing prices and mortgage rates that increased the cost of installing solar panels. Furthermore, the business suffered from a change in regulation in California, which is by far the largest state for solar panels.Six Having the panels became less appealing when the state cut the amount that households received from utilities for supplying electricity to the grid.7.
Enphase experienced a 47% annual loss.
High inflation caused a shift in consumer behavior that had a big effect on Dollar General Corp. (DG).
This year, the discount store saw a nearly 45% decline in sales as it claimed that customers were spending more money on low-margin things like food rather than higher-earning goods.
Additionally, Dollar General announced that it would be hiring back checkout staff because its reliance on self-checkout increases theft.
Pfizer and Moderna
For the producers of COVID-19 vaccinations and medications, the pandemic’s end wasn’t always good news.
The two largest providers’ stocks, Moderna Inc. (MRNA) and Pfizer Inc. (PFE), suffered as fewer people need vaccinations and many chose not to receive further booster shots. As a result, in 2023, their stock values fell by almost 44%.
The firms pushed to manufacture new medications and attempted to move away from COVID-19.
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