Key takeaways
- 2023 was a banner year for US stocks as measured by the S&P 500 Index, especially technology stocks, which benefited from growing demand for artificial intelligence (AI) products.
- The end of the industry slump caused by COVID-19 lockdowns also helped lift shares of transportation companies in the S&P 500.
- Meanwhile, the end of the pandemic reduced demand for COVID-19 vaccines and treatments, hurting shares of the companies in the index that provided them.
The last trading day of 2023 was a losing one for US stocks as the S&P 500 fell 0.3%. However, the down day did not affect the year's result, as the index soared 24% in 2023.
As the last trading day of 2023 ends, we look at the S&P 500 companies that gained and lost the most during the year. Investopedia used stock price data as of Friday's market close to determine the year's biggest gainers and losers in the benchmark index.
Winners
This was a big year for tech stocks, especially everything related to artificial intelligence (AI). Demand for artificial intelligence products has skyrocketed, as the new technology became the "next big thing" for Wall Street in 2023. That trend fueled some of the biggest gainers in the S&P 500 this year.
NVIDIA
No company benefited more from the AI โโboom than Nvidia Corp. (NVDA).
The stock is up more than 254%, well ahead of the next biggest gainer and the biggest percentage growth in the S&P 500 over the year. The chip maker market capitalization crossed the $1 trillion markmaking it the fifth most valuable American corporation.
The only notable hurdle in Nvidia's path came when President Joe Biden's administration imposed new regulations on exports to China in October, a move that Nvidia said would hurt its business. This week, the company threw a chip that would comply with export regulations.
Metaplatforms
Facebook's parent company, Meta Platforms Inc. (GOAL), faced challenges in 2023, but that didn't stop its stock from nearly tripling its price. this year.
Like Nvidia, the company got a boost from AI, but the main driver of enthusiasm for the social media giant came in February, when CEO Mark Zuckerberg declared 2023 to be the year 2023. . GoalThe "year of efficiency" after his actions were punished in 2022. The cost-cutting measures that followed helped Meta's stock soar.
Royal Caribbean Group
The end of lockdowns and other restrictions related to COVID-19 was a blessing for the Travel industryespecially the cruise lines, which essentially shut down for months during the pandemic.
Royal Caribbean Group shares (RCL), along with rivals Carnival Corp. (CCL) and Norway Cruise Line Holdings Ltd. (NCLH), have benefited from pent-up demand from travelers stuck at home due to the outbreak. Royal Caribbean shares rose more than 165%, while competitors Carnival Corp. rose more than 132% and Norwegian finished the year up about 69%.
Builders first source
One might not think that technology would fuel the growth of a construction supply provider, but that was the case for Builders FirstSource Inc. (BLDR).
During the year, the company increased its digital investments and was also helped by acquisitions and product mix. Additionally, its share price rose after S&P Dow Jones Indices' announcement this month that it would be added to the S&P 500 on December 18.
BLDR stock is up more than 155% in 2023.
Uber
Like cruise lines, Uber Technologies Inc. (UBER) was also a winning recipient of the reopenings that followed the end of COVID-19 restrictions. Along with Builders FirstSource, the transportation service also benefited from being included in the S&P 500 in mid December. The stock is up approximately 142% over the year.
Losers
While the overall market advanced, inflation, high interest ratesand falling demand for COVID-19 treatments were some of the reasons some stocks fell further in 2023.
FMC Corp.
FMC Corp. (FMC) shares took a hit of more than 49% this year, wiping out much of the gains of recent years. Shares of the agricultural chemicals maker surged in November after it unveiled a strategic plan. The company launched new products and said it would do a strategic review of non-core assets.
Emphasis
Enphase Energy Inc. (ENPH) the problems were typical of many in the "green" energy sector.
The solar energy equipment maker was hurt by high interest rates and rising home prices, making it more expensive to install solar panels on homes. Additionally, a change in the law in California, by far the largest state for solar panels, was a blow to the industry. The state reduced the payments homeowners receive from utilities for supplying power to the grid, making owning the panels less attractive.
Enphase lost about 47% for the year.
general dollar
A change in consumer behavior driven by high inflation had a significant impact on Dollar General Corp. (Managing Director).
The discount retailer fell about 45% this year as the company said shoppers were spending more money on food and other low-margin items, and not on products that generate more cash.
Dollar General also said it was bringing back cashier employees because its reliance on self-checkout led to an increase in theft.
Moderna and Pfizer
The waning of the pandemic wasn't necessarily good news for COVID-19 vaccine and drug makers.
Shares of the two largest suppliers, Moderna Inc. (mRNA) and Pfizer Inc. (PFE), both struggled because fewer people needed vaccines and many chose not to receive additional boosters. This caused its share prices to fall by approximately 44% in 2023.
Companies tried to move away from COVID-19 and pushed to produce other drugs.
