The S&P 500 (^GSPC) is back near all-time highs.
A recent rally in tech, including a nearly 30% pop in Nvidia (NVDA), has helped bring the index up more than 7% since its Aug. 5 bottom.
In that time, the “Magnificent Seven” tech stocks — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), Tesla (TSLA), and Nvidia (NVDA) — have added more than $1.4 trillion in market cap, nearly half of the S&P 500’s $3.2 trillion market cap gain since Aug. 5.
After a massive drawdown in July, the recent surge helped bring the Nasdaq Composite (^IXIC) out of correction in 11 days, marking its shortest correction since October 2011.
Ned Davis Research chief US strategist Ed Clissold recently told Yahoo Finance that given how tech led the losses in the drawdown, it “makes sense that they’re going to rebound.”
And now, some of the largest names in the sector are sitting back near 52-week highs ahead of a crucial earnings report from Nvidia on Aug. 28.
During second quarter earnings season, some of Nvidia’s AI-powered rivals offered a mixed bag of results that struggled to live up to Wall Street’s expectations.
“This would be the ninth day in a row the S&P is up,” Niles Investment Management founder Dan Niles told Yahoo Finance on Tuesday. “It’s the longest streak since 2004. I wouldn’t necessarily be pushing that into an Nvidia print.
“But I think if you’re not worried about what happens the day after and you’re thinking about this over a multiyear period of time, it should be in pretty good shape.”
A sign is displayed on a Nvidia office building in Santa Clara, Calif., Wednesday, Aug. 7, 2024. (AP Photo/Jeff Chiu) (ASSOCIATED PRESS)
And while the AI trade has once again been leading the market’s latest leg higher, there have been promising developments under the surface at play too.
The S&P 500 equal-weighted index (^SPXEW), which is less influenced than the cap-weighted S&P by moves in Big Tech, just hit a new record high. Sectors including Utilities (XLU), Consumer Staples (XLP), and Health Care (XLV) are now sitting at 52-week highs, while Financials…
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