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The S&P 500's communication services sector has seen strong growth this year, driven by positive earnings and enthusiasm over the promise of artificial intelligence.
Communication services (SP500-50) emerged as the second best performing segment among the 11 S&P 500 sectors, gaining 26% in the first half of 2024. The sector has hit 35 new highs in the first half, reaching a 52-week high of $316.15.
Communication Services Select Sector SPDR Fund (NYSERCA:XLC), which tracks the S&P 500's communication services sector, hit a high of $87.02 and was up 31 times from its six-month high.
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The ai frenzy continued in full force in the first half of 2024, with large-cap companies seeing outsized gains. Google (GOOG) and Meta (META), among the top 7 companies, posted gains of 30% and 42%, respectively, in the first two quarters of 2024.
The meteoric rise of ai has propelled these four communication stocks to an all-time high:
- Target platforms (GOAL) and Alphabet (GOOG), which belongs to the Interactive Media & Services group, hit an all-time high of $531.49 and $186.05 respectively.
- News Corporation (NWSA) of the media industry also hit an all-time high of $28.00 and T Mobile The US index (TMUS), which belongs to the wireless telecommunications services sector, reached its highest level at $182.67.
Meanwhile, media company Paramount Global Class B (PARA) appears to have been in trouble, with shares down. 26% in the first half of the year.
