Market gains this year have been largely driven by the world's largest companies, which extended their rally last week after reporting better-than-feared results. Prior to these reports, concerns had arisen about lofty valuations, macro headwinds, and an earnings recession.

According to the Financial Times, hedge funds were net sellers in tech stocks ahead of earnings and lost $18 billion on those bets. Strong results from the sector were driven in part by heavy cost-cutting, which boosted profit margins.

These companies have also made significant investments in artificial intelligence, which is expected to enhance their results in the coming quarters.

Microsoft (MSFT Quick QuoteMSFT - Free Report) ’s results beat expectations on the top and bottom lines, as well as on quarterly revenue guidance.

Google parent Alphabet's (GOOG Quick QuoteGOOG - Free Report) ’s cloud unit reported a profit for the first time. The company also announced a share repurchase of up to $70 billion.

Amazon (AMZN Quick QuoteAMZN - Free Report) reported stronger-than-expected revenue, thanks to strong growth in its cloud computing and advertising businesses.

Meta Platforms (META Quick QuoteMETA - Free Report) ’s shares surged 15% after earnings and are now up more than 90% year-to-date.  The CEO has called 2023 the "Year of Efficiency" for the social media giant.

Apple (AAPL Quick QuoteAAPL - Free Report) will report later this week.

To learn more about the Invesco NASDAQ 100 ETF (QQQM Quick QuoteQQQM - Free Report) , the Vanguard Mega Cap Growth ETF (MGK Quick QuoteMGK - Free Report) and the Roundhill BIG Tech ETF , please watch the short video above.