7,700 Today. 8,000 Next?
Guys, it’s almost unbelievable, but the S&P 500 climbed above 7,700 points today, hitting a new all-time high. The main reason? Investors are gaining confidence that the AI-driven earnings boom is still going strong, while geopolitical risks may finally be starting to ease.
Several factors pushed the market higher today despite the ongoing macro FUD. Better-than-expected results and upbeat guidance from AI-related companies, including strong read-throughs from Amazon and Microsoft, as well as optimism around names like Caterpillar and Palantir, reinforced the view that AI spending is translating into real profits.
Another encouraging sign was that the rally wasn’t limited to the mega-cap tech names. Cyclical sectors and industrials also participated, giving the move much broader market support and helping push the index to fresh highs.
The S&P 500 is now up 12% YTD and more than 20% over the past 12 months. Will we see 8,000 points this year? It doesn’t seem impossible, in fact, it looks quite achievable if this momentum continues. After all, it’s only about another 4% from here.
Hold on to your stocks, but don’t forget to take some profits along the way. Nobody knows when the next big correction or the next black swan will show up. Just saying.
