Background and Drivers
The S&P 500 has continuously gained value in recent months and recently reached a record high. This development is of great importance for both investors and retail investors, as it reflects the current market situation and the sentiment in financial markets. Here are some key factors that have contributed to this development:
- Technology Stocks: The S&P 500 has been strongly driven by technology stocks in recent weeks, particularly by companies like Nvidia and Meta. Nvidia has established itself as a leading US chip manufacturer and has dethroned Microsoft as the world’s most valuable company.
- Profit Growth Expectations: Analysts expect a profit growth of 7.1% for S&P 500 companies by 2025, indicating a positive market development. These forecasts will be reviewed in the coming weeks with the Q2 results.
- Economic Factors: The moderate tone of the US Federal Reserve and the newly gained optimism in trade policy have also contributed to the positive development. Despite ongoing geopolitical uncertainties, the S&P 500 has been able to continue its rally.
Current Market Situation
- Record High: The S&P 500 reached a record high on Thursday, indicating a persistently positive market development. The index closed at around 6263 points.
- Nasdaq 100: The Nasdaq 100, which is heavily influenced by technology stocks, also reached a record high before easing slightly.
- Dow Jones: The Dow Jones Industrial also increased and is approaching the 45,000 points mark.
Outlook
The upcoming earnings season will represent an important test for the US stock markets. Expectations for strong profit growth must be confirmed by the actual Q2 results. Additionally, the labor market remains robust, indicating no signs for interest rate cuts. Despite these positive developments, some analysts remain skeptical as geopolitical tensions and domestic uncertainties persist.