Facebook looks like an early contender for the comeback story of 2023 after beating Q4 earnings expectations and announcing a big share buyback. Tech has quickly become red hot as investors begin to shun cyclicals and pivot almost entirely into growth sectors. The power of the current growth rally is perhaps no more evident in any area of the market than here.

Market sentiment has shifted sharply towards growth sectors, but energy is and should hold up well. Part of this current rally is oversold bounce and part the pivot to growth over defensive/value. If Powell can avoid intimating anything too hawkish coming out of this week’s FOMC meeting, it’s entirely possible this sentiment can carry forward into March.

The anticipation of higher demand from China has lifted crude oil prices, but that hasn’t yet translated into outperformance. Industrial metals have had quite a month and the China reopening should clearly have a positive impact on materials stock prices. It’s been about six months since tech had a turn at the front of the line, but it looks like growth is back again.