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- Growth stocks are beating value peers by the most in 3 years, despite interest-rate increases and banking-sector turmoil.
- Sizzling rallies in Nvidia, Meta and Tesla shares have helped power the surge in growth stocks.
- The growth-stock outperformance reflects bets that the Federal Reserve is close to ending its rate hikes, analysts said.
Some of the biggest names on Wall Street including Goldman Sachs and BlackRock have projected 2023 to be another year for favoring value stocks over their growth peers, amid rising interest rates and looming recession risks.
Yet, market trends have so far played out just the other way around.