Apple, Facebook, Google and other giant tech companies are exploding.
Silicon Valley may not like many of President Donald Trump's policies, especially his proposed ban on immigration. But investors in tech stocks don't seem too concerned.
Since Trump has promised to stimulate the economy with tax cuts, more government spending on infrastructure and fewer regulations - many big tech stocks are on fire this year.
The biggest tech firms in the world - Facebook, Amazon, Netflix and Google, have all jumped in 2017.
Facebook is up nearly 20%. Amazon has gained 12%. Netflix is up 14%. And Google’s parent company Alphabet is up 7%.
And Apple – the biggest company in the world - is the best performer in the Dow this year, rising 20%.
All six stocks are part of the Nasdaq, which has gained 8% and has outperformed the Dow and S&P 500.
The solid performance of these companies has helped push the Nasdaq to within a very short distance from the 6,000 mark for the first time ever.
How long will it take for the Nasdaq to get to 6,000? That probably will depend on earnings. Most tech companies reported solid results for the fourth quarter and have issued good guidance for the first quarter and 2017.
While many investors are obsessed with news from Washington - these tech giants should keep doing well regardless of the political developments since they are leaders in their respective industries.
There's also the fact that other Trump policies - particularly tax reform - could boost tech stocks substantially.
If Apple, Microsoft, Google, Oracle, Cisco and other large techs with a lot of cash overseas are allowed to bring the cash back, or repatriate it, at a lower tax rate, they may invest more in R&D, buy back stock, boost dividends or acquire more companies.
At the end of the day, as long as investor sentiment about Trump remains strong - then big tech stocks and other blue chips should continue to lead.
