Wall Street seemed completely at ease after the US April CPI data was released on Wednesday.
Overnight, the three major US stock indices all hit record highs.$S&P 500 Index (.SPX.US)$It surpassed the 5,300 mark for the first time.$Dow Jones Industrial Average (.DJI.US)$Then, for the first time in history, it closed above 39,900 points, approaching the 40,000 point mark.
Entering 2024, this is the 23rd time that the S&P 500 index has set a new closing record, and the 18th time for the Dow.$Nasdaq Composite Index (.IXIC.US)$The 8th time. Since the beginning of the year, the NASDAQ has risen 11.53%, the S&P 500 has risen 11.29%, and the Dow has risen 5.89%.
After the release of CPI and retail sales data, CME's US Federal Reserve observation tool showed that the probability of traders predicting that the Federal Reserve will cut interest rates for the first time in September has also risen above 70%.
The three major indices collectively topped! Which bullish stocks are behind it?
Through FutubullStock SelectorScreening the individual stocks with a market capitalization of > 30 billion US dollars in the three major indices and the highest increase since the beginning of the year, it can be found that the AI boom is still leading the US stock market.$Super Micro Computer (SMCI.US)$The cumulative increase during the year was as high as 235%, a chip giant$NVIDIA (NVDA.US)$The cumulative increase during the year was over 90%,$Arm Holdings (ARM.US)$A cumulative increase of more than 50%,$Amazon (AMZN.US)$The cumulative increase was over 22%.
Furthermore, the idea that “the end of AI is electricity” has been rampant this year. It is one of the largest electricity producers and retail energy suppliers in the US$Vistra Energy (VST.US)$, the largest nuclear e-commerce company in the United States$Constellation Energy (CEG.US)$Overnight, both hit new highs, rising more than 150% and 91% during the year.
Previously,“Missed the Nvidia train? Wall Street Guiding the Way: This sector is expected to be boosted by AI”,“Outperform S&P and surpass Nvidia? This industry is becoming a new Wall Street favorite”,“AI opens a big era of electricity! US power stocks followed the trend and “took off”; will now be a good opportunity to lay out?》,“Is electricity the next AI beneficiary? Learn how to invest in electricity stocks in one article》As mentioned in many other articles, Morgan Stanley predicts that the global demand for electricity from generative AI may double, and coworkers can check it out.
In fact, in addition to these big bullish stocks, there are also many ETFs in the US stock market that are reaping steady happiness.$ProShares UltraPro S&P500 ETF (UPRO.US)$Over the course of the year, it has increased by more than 31%.$ProShares UltraPro QQQ ETF (TQQQ.US)$,$Proshares Ultra S&P500 (SSO.US)$Increased by more than 20%,$iShares Core S&P 500 ETF (IVV.US)$,$Vanguard S&P 500 ETF (VOO.US)$,$SPDR S&P 500 ETF (SPY.US)$The average increase was more than 20%.
How to trade ETFs on Futubull?
Niu friends open the Futubull App and click Market>ETFYou can choose from a variety of ETFs. Select any ETF and click the trade button to place an order.
What do you think of the future market?
UBS said that with last month's fears in the stock market subsided, the current rebound is the beginning of a large-scale summer rebound. According to a report released on Tuesday, UBS believes the S&P 500 could reach 5,500 points by the end of this year. This means that the index can still rise around 3.61% from its current level. The bank said that cooling inflation, interest rate cuts by the Federal Reserve, expansion of profit growth, and continued investment in artificial intelligence will be the main driving forces.
It is worth noting that$ProShares UltraPro Short QQQ ETF (SQQQ.US)$It fell below $10 overnight.
According to market opinion, the significance behind SQQQ falling below $10 can be attributed to the following three points:
A shift in market sentiment: SQQQ falling below $10 may mean that bearish forces in the market have reached a tipping point, and they may choose to forego further shorting or start looking for buying opportunities. This shift in market sentiment is critical to understanding future trends in the NASDAQ market.
Technical support level: In financial market analysis, prices are often affected by certain psychological or technical support levels. SQQQ's $10 price may be such a support level. Once it falls below this level, it may trigger a series of stop-loss orders or further technical sell-offs, but it may also trigger buying power, leading to a price rebound.
Potential impact of the NASDAQ market: Since SQQQ has an inverse relationship with the NASDAQ market, price changes may indicate the future trend of the NASDAQ market. SQQQ falling below $10 may mean that the NASDAQ market is about to usher in a wave of upward movements, especially when the SQQQ price rebounds, which is more likely.
However, at a time when the market was happy and encouraged, Goldman Sachs poured cold water on the market. The bank's analysts said that with the S&P 500 index currently higher than Goldman Sachs's year-end forecast, the rise in US stocks this year has basically come to an end. It believes that currently, there is no reason to support a further rise in US stocks in terms of economic fundamentals, stock market valuations, or corporate profits. He also pointed out that the capital flow model also shows that the further rise in US stocks will be limited. Of course, he also stressed that if unexpected changes occur, he may also adjust his estimates.
Editor/Somer