“The valuation of some of these moves is like Icarus flying too close to the sun,” said Richard Steinberg, chief market strategist at The Colony Group. Concerns also remain on Wall Street that the market’s run is overdone. Meanwhile, Microsoft shares also quietly notched an all-time high, closing at $348.10 on Thursday.ĭespite some bullish signs in the market, investors say the math isn’t adding up to a sustained rally - especially considering a possible recession looms on the horizon.Īnd while the market’s breadth has broadened in recent weeks, mega-cap tech stocks are still responsible for the lion’s share of gains, potentially leaving the rally on shaky legs. “There’s no better stock to own in tech than Apple… despite an economy that is still a bit cloudy,” Ives said. Shares of the tech behemoth are up about 42% for the year.ĭan Ives, an analyst at Wedbush Securities, expects Apple shares to hit a price target of $240 by next summer and the company to reach a $4 trillion market capitalization closer to 2025, citing the hype surrounding AI and the potential for a record-breaking product cycle for a new iPhone model expected for release this fall. The broad-based index on Thursday closed at its highest level since April 2022. Then, the S&P 500 earlier this month entered a bull market, up over 20% off its low from last October. In late May, Congress’s passage of the debt ceiling deal (later signed into law by President Joe Biden) and a blowout quarter from chipmaker Nvidia pushed mega-cap tech names higher, helping stocks break through the trading range they had been stuck in for months. S&P 500 reaches bull market territory and new highs There are several signs that the market is, at least for now, on a tear. Stocks fell slightly on Friday, but still ended the week up. That initially triggered a steep sell-off before investors quickly shrugged off the Fed’s hawkish signal, and stocks marched up again by Wednesday’s close. The Federal Reserve on Wednesday held interest rates steady but indicated that it could hike rates twice more this year. “Much of what’s going on right now may very well be that it’s sort of the last hurrah, the last gasp before we tip into contraction.”Īlready, there are signs that cracks are forming and could soon widen. “The market is behaving pretty delusionally,” said Amanda Agati, chief investment officer at PNC Financial Services Asset Management Group. Shares of Apple notched an all-time high close of $186.01 last Thursday, compared to $135.43 a year before.įor the year, the S&P 500 is up roughly 15%, the Dow has gained 3.5% and the Nasdaq Composite has risen 30.8%.īut the rally’s recent acceleration foreshadows some pain ahead, investors say. Mega-cap tech stocks that were battered by rising interest rates in 2022 have also seen a huge boost this year. The broad-based index is at 4,409.59 as of the close on J– marking a roughly 20% gain from a year earlier despite collapses of regional banks, an only narrowly avoided debt default and the Fed’s continued battle against inflation. The stock market has made incredible strides since its downturn last year – so much so, it’s difficult to believe the economy could be on the verge of recession.Īt the market’s close on June 16, 2022, the S&P 500 index was at about 3,666.77, beaten down by persistent inflation, the Federal Reserve’s interest rate hikes and geopolitical tensions.
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