NASDAQ Archives - Page 2 of 3

February 19, 2025September 12, 2025

S&P 500 hits new record high

The S&P 500 closed at a record high Tuesday 18th February 2025 after investors shook off headwinds on the global trade and inflation

The S&P 500 index gained 0.24% to close at a record of 6129 on 18th February 2025. The Nasdaq Composite closed up at 20041 while the Dow Jones Industrial Average added finished the day at 44556.

S&P 500 hits new record high to close at 6129 as of 18th February 2025

The energy sector was the top performer in the S&P 500, increasing by 1.9%. Halliburton and Valero Energy spearheaded the gains. Technology stocks also gained.

The general consensus is that the market is still trying to break out of the consolidation it’s been in since early December. This week we see retail earnings, but news on Trumps tariffs could continue to be a wild card for the markets.

Wall Street is coming off a winning week. The Dow Jones gained around 0.6% last week, while the S&P 500 advanced 1.5%. The Nasdaq rose 2.6%.

Much of last week’s gains occurred later in the week after President Donald Trump’s proposal for reciprocal tariffs on countries that impose levies on U.S. goods reassured investors who were concerned that the tariffs would be more severe.

December 19, 2024September 12, 2025

Dow down again – falling for 10th consecutive day

The Dow Industrial Average dropped 1,123 points to 42,326.87, marking its 10th consecutive day of decline and the longest since 1974.

The Dow is lining up for potentially its worst weekly performance since March 2023.

The S&P 500 fell 2.95% to 5,872.16, while the Nasdaq Composite decreased 3.56% 19,392.69 as losses in the tech-heavy index accelerated at the end of the session.

Both the 30-stock Dow and the S&P 500 recorded their largest one-day loss since August 2024.

The Dow and most other indices reacted badly to the Feds interest prediction for 2025 – suggesting ‘maybe’ only two more rates cuts to come.

Dow Jones one-day chart 18th December 2024 (after FOMC interest rate announcement)

December 18, 2024September 12, 2025

Dow down in the doldrums after nine day losing streak

On Tuesday 17th December 2024, the Dow Jones Industrial Average lost 0.61%, completing a nine-day losing streak.

The Dow Jones Industrial Average has recently experienced its longest losing streak since the 1970’s – 1978 to be precise.

The index has suffered nine consecutive days of declines. This downward trend began on 4th December, when the index closed above 45,000 for the first time, only to drop over 1,500 points since then.

However, it’s not a major fall for the 30-stock index, despite the concerning numbers – it has been a slow burn and not a ‘massive’ correction. It represents a little under around a 3.5% pullback.

Several factors contribute to this decline. Investors are bracing for the Federal Reserve’s final interest rate decision of the year, expectations of a 0.25% cut. However, stronger-than-expected retail sales in November have introduced uncertainty about the Fed’s future monetary policy. Additionally, concerns about the potential impacts of-E Donald Trump’s tariff plans have added to volatility.

Despite the Dow’s losses, the broader S&P 500 and Nasdaq Composite indices have demonstrated resilience, with the latter even achieving record highs. This divergence underscores the mixed sentiment among investors, with some rotating out of high-growth stocks like Nvidia and into other tech sectors.

Market analysts suggest that the Dow’s ‘adjustment’ may be a healthy pause, offering an opportunity for stocks to consolidate before potentially resuming their upward trajectory. Investors ought to remain vigilant, closely monitoring market trends and individual stock performance to navigate this dynamic environment effectively

The heaviest drag on the Dow is UnitedHealth, which has contributed to more than half of the index’s decline over this period.

Some of this money has likely rotated to crypto with Bitcoin notably blasting through the $100,000 mark to touch $107,000 in recent trading.

December 17, 2024September 12, 2025

Nvidia in correction territory amid Nasdaq highs

Nvidia recently entered correction territory, with its stock falling over 10% from its peak. This decline comes after a robust rally fueled by investor excitement around AI technology.

Despite Nvidia’s slip, the Nasdaq Composite continues to soar to new highs, driven by strong performances from other tech giants like Apple, Microsoft, and Alphabet.

The market’s mixed signals reflect a broader trend of sector rotation. Investors are taking profits from Nvidia after its impressive gains and reallocating their capital to other promising tech stocks. This strategy allows investors to lock in profits while still capitalising on the overall bullish sentiment in the tech sector.

The Nasdaq’s resilience, despite Nvidia’s downturn, highlights the strength and diversity of the technology sector. While Nvidia’s correction is a reminder of the volatility inherent in high-growth stocks, the broader market remains optimistic about the future of technology and innovation.

Market analysts suggest that Nvidia’s correction may be a healthy pause, providing an opportunity for the stock to consolidate before potentially resuming its upward trajectory. As the tech landscape continues to evolve, both Nvidia and its peers remain at the forefront of driving the next wave of digital transformation.

Investors should stay vigilant, monitoring both market trends and individual stock performance to navigate this dynamic environment effectively.

Nvidia is still holding its $3.2 trillion market cap valuation reached this year.

Nvidia one month chart as of 16th December 2024

December 2, 2024September 12, 2025

U.S. stocks have a November to remember as Dow touches 45,000

On Friday 29th November 2024, the Dow Jones reached a new record high, closing at 44,910 points after breaching 45,000 temporarily

This formed part of a wider market surge that led the S&P 500 and Nasdaq Composite to also hit record peaks. It concluded a remarkable month for the stock market, marked by the Dow achieving its most substantial monthly gain of the year, all thanks to Trump winning the U.S. election.

In November, the S&P 500 experienced a 5.73% rise, and the Dow Jones Industrial Average recorded a notable 7.54% increase, both marking their most robust monthly performances for the year. Concurrently, the Nasdaq Composite enjoyed a 6.21% surge, its largest monthly gain since May.

Recently, a host of factors have pumped up investors’ sentiment for stocks.

The presidential election concluded with Donald Trump decisively securing the presidency. This eliminated any uncertainty, which is often disliked by investors. Additionally, Trump’s support for the stock market, tax cuts, cryptocurrency, and deregulation is well-received by investors.

The U.S. economy expanded at an annualised rate of 2.8% in the third quarter. Although the gross domestic product is projected to grow by 1.31% in the fourth quarter, this still signifies an expansion, countering concerns of a potential recession hitting the U.S. economy.

Even a slowing growth rate can have its advantages. It provides the U.S. Federal Reserve with greater motivation to implement a second rate cut this year at its December 2024 meeting, potentially boosting economic activity.

Moreover, the seasonal strength of stocks in November 2024 has infused investors with a sense of optimism.

Entering December 2024, it’s challenging to disregard the current bull market, given the favourable conditions.

U.S. stocks are experiencing a robust year-end rally, partly due to short sellers being compelled to purchase stocks to close their positions as the year concludes.

This surge of buying could propel the S&P 500 to reach 6,300, suggesting a 5% increase for December 2024 and a 32.1% rise throughout 2024, surpassing the 24.2% gain seen in 2023.

Additionally, there’s the significant boost in cryptocurrency values, often referred to as the ‘Trump pump,’ – and this too is currently underway.

Dow Jones one-day chart as of 29th November 2024

November 8, 2024September 12, 2025

S&P 500 and Nasdaq close at new records again as Fed cuts rates

More new records set in extended U.S. post-election rally

The S&P 500 and Nasdaq climbed on Thursday 7th November 2024, extending the rally following the victory of President-elect Donald Trump, while traders considered the implications of the Federal Reserve’s recent rate reduction.

The S&P 500 rose to close at an all-time high of 5,973.10, while the Nasdaq Composite increased by to end at 19,269.46, marking its first finish above 19,000.

The Dow Jones Industrial Average remained virtually unchanged, dipping slightly by less than one point to 43,729.34. During the trading session, all three indices reached new intraday highs.

Following President Trump’s electoral victory, the stock market experienced a significant rally on Wednesday 6th November 2024, with the Dow soaring by 1,500 points. The S&P 500 surged recording its best post-election day performance ever.

Post-election, the bond market has seen considerable fluctuations, with Treasury yields declining on Thursday after a sharp increase the previous day.

October 25, 2024September 12, 2025

Nasdaq hits new all-time high – Tesla enjoys another great day

The Nasdaq Composite climbed to an all-time high on Friday 25th October 2024, boosted by BIG tech stocks.

The tech-heavy index rose 0.56% to 18,518.61

The tech-heavy Nasdaq Composite index rose 0.56% to 18,518.61

Tech stocks boosted the market ahead of their upcoming earnings. Nvidia added 0.8%, and shares of Meta Platforms, Amazon and Microsoft were also higher.

Some analysts are suggesting it may be time to short Amazon and Apple as they head into earnings season? Let’s see.

Tesla helped boost the Nasdaq as its stock climbed to close at a 13-month high, sustaining its rally post-earnings.

Tesla enjoyed its best market day since 2013, the stock rose more than 3% on Friday 25th October 2024, closing at its highest since September 2023.

Tesla 5-day stock chart as of 25th October 2024

September 20, 2024September 12, 2025

Dow up 500 points, S&P 500 closes above 5700 as both reach new highs!

Stocks soared on Thursday 19th September 2024, with the Dow Jones Industrial Average and the S&P 500 reaching new record highs, following the Federal Reserve’s decision on Wednesday to cut interest rates by half a percentage point.

The Dow Jones climbed 522.09 points to close at 42025, surpassing 42000 for the first time. The S&P 500 ascended to a close of 5713, breaking the 5700 threshold. Meanwhile, the Nasdaq Composite jumped 2.51% to finish at 18013.

Dow Jones one-day chart

S&P 500 one-day chart

August 27, 2024September 12, 2025

Dow Jones hits new record high

The Dow Jones Industrial Average (DJIA) reached a new record high on Monday 26th August 2024, closing at 41240.

Investors have responded positively to the Federal Reserve’s recent indications that interest rate cuts are highly probable to commence in September 2024.

Market dynamics and sentiment

The rise of the DJIA was propelled by advances in sectors like materials, utilities, and energy. Conversely, the broader market exhibited mixed outcomes. The S&P 500 declined by 0.3%, and the Nasdaq Composite dropped by 0.8%, contrasting with the Dow’s notable performance. This disparity is largely due to the lagging of technology stocks, especially with significant drops in firms such as Nvidia and Tesla.

Federal Reserve

Federal Reserve Chair Jerome Powell’s recent address at the Jackson Hole Economic Symposium was pivotal in bolstering investor confidence. Powell’s remarks indicated that the Fed is ready to cut interest rates, which many investors believe will foster economic growth and stabilise the markets. The expectation of rate cuts has played a significant role in the recent market rally, with predictions of potential reductions up to 1% by the end of 2024.

Dow Jones one day chart at record high

Despite varied performances across sectors, the Dow reaching a new high signals a wider optimism in the market. As the year unfolds, the dynamics among Federal Reserve policies, corporate earnings, and economic indicators will continue to influence market directions.

August 20, 2024September 12, 2025

U.S. stocks extend gains as S&P 500 and Nasdaq post eighth positive day

Highs and lows of one volatile week in the U.S. stock market

U.S. stocks climbed on Monday 19th August 2024, continuing the market’s rebound as investors prepared for the highly anticipated Federal Reserve symposium at Jackson Hole later in the week.

The S&P 500 ended the day at 5608

The Nasdaq Composite surged to finish at 17876

Both the S&P 500 and Nasdaq achieved their eighth consecutive day of gains, a record for 2024

The Dow Jones Industrial Average gained 236 points closing at 40896.

The day’s activity extended the recent rally, signalling another twist in what has been a volatile period for stocks. Last week saw the largest gains of the year for the three major indexes.

August began shakily with disappointing data igniting recession fears and intensifying concerns that the Federal Reserve was lagging in interest rate reductions. This led to a worldwide sell-off, culminating in the S&P 500’s worst day since 2022 on 5th August.

However, encouraging data last week appeared to calm the markets and raised hopes for a ‘soft landing’ of the economy. Positive figures in retail sales and initial jobless claims, along with robust earnings from Walmart, contributed to this optimism. Additionally, the annual inflation rate for July’s consumer price index reached its lowest point in over three years.

August 16, 2024September 12, 2025

Comeback rally gains steam – Nasdaq, S&P 500 and Dow up

U.S. stocks surged on Thursday, buoyed by investor confidence bolstered by positive consumer and labour data, which alleviated fears of a recession.

The Dow Jones Industrial Average soared 554 points to close at 40563 – one year chart

The S&P 500 ended up 1.61% at 5,543.22, marking its sixth consecutive gain. The S&P 500 index has risen approximately 8% from its intraday low on 5th August 2024 – one year chart

The Nasdaq Composite escalated 2.34% to 17594 – one year chart

Positive U.S. economic data

Retail sales saw a 1% increase in July 2024, significantly exceeding the prediction of a 0.3% rise. Additionally, the number of weekly jobless claims dropped. This data provided a boost to investors and the broader market, which is recovering from an August downturn linked to worries over a slowing economy, sparked by a disappointing U.S. jobs report on 2nd August 2024.

With over a 3% increase this week, the S&P 500 is now just about 2% shy of its record high. All three major U.S. indexes are trading above their 2nd August closing levels, which preceded the global stock market plunge on 5th August.

August 8, 2024September 12, 2025

U.S. stocks recovery attempt fizzles out

Stocks closed lower on Wednesday 7th August 2024, failing to fully recover from Monday’s sell-off.

The Dow Jones Industrial Average dropped 234 points to 38763.45. The S&P 500 fell to 5199.50, while the Nasdaq Composite closed at 16195.81.

During the day, the Dow had surged around 480 points, the S&P 500 had climbed 1.73%, and the Nasdaq had risen over 2%.

Dow Jones one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

However, a downturn in Nvidia and other major tech stocks, after an initial rise, led to a significant drop in the afternoon. Nvidia retracted by 5.1%, Super Micro Computer plummeted 20.1% following its fiscal Q4 earnings missing analyst predictions, Tesla fell 4.4%, and Meta Platforms decreased by 1%.

Nvidia one day chart 7th August 2024

One month chart Super Micro Computer 7th August 2024

Nvidia one day chart 7th August 2024

The U.S.10-year Treasury yield continued to rise, increasing by about six basis points to 3.95%, returning to its level before the disappointing job figures last Friday, which had sparked concerns of an economic slowdown.

The Volatility Index (CBOE), the so called ‘fear gauge‘ was trading at around 29, having dropped to as low as 22 earlier in the day. This sharp decrease from Monday 5th August 2024 suggests that investor fears are subsiding, however, they remain higher than at the beginning of the month.

The Volatility Index (CBOE) on 7th August 2024

August 7, 2024September 12, 2025

U.S. stock markets rise after days of turmoil

U.S. shares gained on Tuesday 6th August 2024, signalling a tentative stabilisation in global markets after a period of significant declines.

The Nasdaq, known for its tech-centric portfolio, along with the Dow Jones Industrial Average and the S&P 500, all ended the day in more positive territory.

This ‘lift’ came after a period of muted activity in UK and European markets, with London’s FTSE 100 experiencing an initial surge before retreating.

In Japan, the Nikkei 225 stock index recorded a substantial rise of 10.2%, or 3217 points, marking its largest single-day point increase following a steep drop the day before.

The recent turmoil in the stock market was triggered on Friday 2nd August 2024 by unsatisfactory U.S. job data for July 2024, which indicated an increase in unemployment, raising alarms over a potential recession.

Additionally, there has been growing apprehension that stocks of major technology firms, especially those with significant investments in artificial intelligence (AI), may have been excessively valued, leading to challenges for some of these companies.

August 6, 2024September 12, 2025

$1 trillion rout as Markets punishes tech stocks

The seven most valuable U.S. tech companies experienced a combined loss of $1 trillion in market value at the start of Monday’s trading session – 5th August 2024

The Nasdaq declined over 3% following its sharpest three-week drop in two years.

Nvidia’s shares fell approximately 6%, while Apple’s dropped more than 4%.

On Monday, as the U.S. markets commenced trading, the market capitalization of the largest tech companies plummeted by about $1 trillion, exacerbating a decline that pushed the Nasdaq into correction territory the previous week.

Markets go up and markets go down

In early trade Nvidia’s market cap decreased by over $300 billion, but it swiftly regained about half of that loss. The chipmaker’s shares ultimately closed down 6.4%, equating to a $168 billion loss. Apple and Amazon saw their valuations fall by $224 billion and $109 billion at market open. Apple’s market cap finished 4.8% lower, a $162 billion decrease. Amazon’s valuation fell by 4.1% at closing, a $72 billion reduction.

Including significant drops in Meta, Microsoft, Alphabet, and Tesla, the top seven tech giants saw a $995 billion loss in market value in the initial moments of trading, although they did recover somewhat as the day went on.

August 5, 2024September 12, 2025

Global stock market rout intensifies as Dow futures dip over 1200 points

U.S. stock futures slumped Monday 5th August 2024 as global markets sell-off centered around potential U.S. recession fears.

About one hour before U.S. stocks open – here’s the situation

Dow Jones Industrial Average futures dropped 1250 points following a 611point loss on Friday 2nd August 2024.

S&P 500 futures are down 4.6% after the benchmark lost 1.8% on Friday 2nd August 2024.

Nasdaq-100 futures lost 6% as big tech stocks take a hit in early trading.

Japan’s Nikkei 225 plunged 12% in its worst day since the 1987 Black Monday crash.

If the Dow Jones decline continues it would be the first 1000 point decline since September 2022.

July 25, 2024September 12, 2025

U.S. stocks slip as Nasdaq tumbles for worst day since 2022 – Tesla and Alphabet fall

Stocks sold off Wednesday 24th July 2024, blighted by underwhelming reports from Tesla and Alphabet – leading the Nasdaq Composite and the S&P 500 to post their worst sessions since 2022.

The S&P 500 index dropped to closing at 5427, while the tech-heavy Nasdaq slid around 3.65% to end at 17342. The Dow Jones Industrial Average shed 504 points closing at 39853.

Nasdaq Comp one day chart 24th July 2024

Shares of Google parent company Alphabet fell 5% for their biggest one-day drop since 31st January, when they dropped 7.5%. Although Alphabet reported good numbers, YouTube advertising revenue came in below the consensus estimate causing share to dip.

Alphabet one day chart 24th July 2024

Tesla shares declined around 12% – their worst day since 2020 – on weaker-than-expected results and a 7% year-on-year drop in auto revenue.

Tesla one day chart 24th July 2024

July 18, 2024September 12, 2025

Worst day for Nasdaq since 2022 as investors continue to rotate out of tech. S&P 500 slides – Dow gains

On Wednesday 17th July 2024, the Nasdaq Composite and S&P 500 pulled-back as investors continued to shift from tech stocks to more interest rate-sensitive sectors.

The S&P 500 dropped 1.39%, closing at 5588. The tech-geared Nasdaq tumbled 2.77%, finishing at 17996, marking its worst session since December 2022 and ending below 18000 for the first time since 1st July 2024.

Conversely, the Dow Jones Industrial Average resisted the downward trend, gaining around 243 points, or to close at 41198. This advance led the index to close above the 41000 milestone.

Nasdaq Composite 17th July 2024 – one day chart

S&P 500 17th July 2024 – one day chart

Dow Jones 17th July 2024 – one day chart

July 11, 2024September 12, 2025

Big Tech and AI stocks push S&P 500 and Nasdaq to new all-time highs!

On Wednesday, 10th July 2024, the S&P 500 reached a new record high, surpassing 5,600 for the first time, propelled by a significant surge in semiconductor stocks.

The S&P 500 index rose by 1.02%, ending the day at 5,633 and marking its seventh consecutive day of gains. The Nasdaq Composite increased, achieving a new all-time high closing at 18,647.

This year has seen the S&P 500 close at record highs some 37 times, with the Nasdaq following closely with 27 record high finishes.

S&P 500

Nasdaq Composite

The Dow Jones Industrial Average grew by 429 points, finishing at 39,721.

Note: figures rounded

July 11, 2024September 12, 2025

Japan’s Nikkei blast through 42000 to reach all-time high

Japan’s Nikkei 225 surpassed the 42,000 threshold for the first time ever during a widespread increase in Asia-Pacific markets on Thursday 11th July 2024.

This surge followed a rally in U.S. Big Tech stocks, fueled by optimism over a potential Federal Reserve rate cut moving ever closer.

The Nikkei climbed almost 1% to close at 42,224 driven by gains in technology shares, while the comprehensive Topix index advanced to finish at 2,929.

Nikkei index

July 9, 2024September 12, 2025

Japan, India and U.S. stock markets continue to hit new record highs!

Asia-Pacific markets witnessed highs on Tuesday 8th July 2024, mirroring the gains on Wall Street where the S&P 500 and the Nasdaq Composite ended at record highs. India’s Nifty 50 index also hit an all-time high of 24401.2

Investors are anticipating the forthcoming U.S. consumer price index release to discern the Federal Reserve’s direction on interest rates.

Pundits

Pundits have moved this year from four 0.25% rate reductions to one and now maybe to two with the first in September 2024. The Fed trickles decisions out from its fickle stance and each time the markets move in anticipation like a lap dog eagerly awaiting a pat. It almost doesn’t matter what the Fed does – markets want to go up. However, a rate reduction and good economic and earnings news will drive the markets even higher, for a while.

Fickle Fed

Markets are currently anticipating earnings reports. The Federal Reserve, having considered the latest economic reports, has influenced the markets with a mix of indifferent decisions. AI and technology have significantly shifted the stock market landscape, with the potential for further growth – provided that earnings sustain the pace of AI investments and expenses.

Both the S&P 500 and the Nasdaq Composite achieved record highs again overnight, alongside Japan’s Nikkei and Topix reaching new highs too.

The Nikkei 225 climbed to settle at 41580.17 after hitting a new high of 41769.35. The Topix also gained, closing at 2895.55, having touched a peak of 2907.21.

Nikkei

Topix

S&P 500

Nasdaq Composite

Nifty 50

July 6, 2024September 12, 2025

S&P 500 and Nasdaq hit record highs again as job data raises chance of a Fed interest rate cut

Markets respond positively to job data as the S&P 500 and Nasdaq break record highs, again!

S&P 500 record high

Nasdaq Composite record high

Nasdaq 100 record high

U.S. non-farm payrolls increase

The U.S. economy added slightly more jobs than expected in June 2024 though the unemployment rate increased, the U.S. Labor Department reported Friday.

Non-farm payrolls increased by 206,000 for the month, better than the 200,000 Dow Jones forecast though less than the downwardly revised gain of 218,000 in May, which was cut sharply from the initial estimate of 272,000.

The unemployment rate unexpectedly rose to 4.1%, matching the peak since October 2021, presenting a conundrum for Federal Reserve officials as they consider their next steps in monetary policy. Projections had indicated that the unemployment rate would remain stable at 4%.

July 4, 2024September 12, 2025

Nasdaq and S&P 500 both hit new highs as markets close early for U.S. Independence Day!

The S&P 500 reached new heights in a shortened trading session on Wednesday 3rd July 2024, with investors seemingly dismissing lacklustre economic data.

The S&P 500 closed at a new high of 5537, while the Nasdaq Composite finished the session at 18188, buoyed by rallies in technology and AI stocks like Tesla and Nvidia. Both indices reached new all-time highs during the session and closed at record levels.

The Dow Jones Industrial Average lost just closed down at 39308.

Trading volume was subdued as the New York Stock Exchange closed early at 1 p.m. ET. The exchange will remain closed on Thursday 4th July 2024 for Independence Day celebrations.

S&P 500: One-year chart – index closed at a new record high

S&P 500 One-year chart closed at new record high

Nasdaq Composite: One-year chart closed at new record high

June 21, 2024September 12, 2025

S&P 500 breaches 5500 but closes slightly lower as Nvidia pulls back from its meteoric rise

The S&P 500 retreated on Thursday 20th June 2024, having momentarily surpassed the 5500 for the first time ever, as Nvidia, a favourite stock with Wall Street investors, relinquished its earlier gains.

The S&P 500 index fell 0.25% to end at 5473. Earlier in the session, the S&P 500 gained around 0.34% to hit a new all-time high.

S&P 500 one day chart 20th June 2024

The Nasdaq Composite dropped 0.79% to finish at 17721. The Dow Jones Industrial Average (Dow) jumped around 299 points, to close at 39134.

Nvidia lost ground and handed the Market Cap crown back to Microsoft after briefly enjoying the accolade for just 2 days. At one point, Nvidia trimmed around $240 billion off its Market Cap as investors took profits.

Will Nvidia regain the crown in the coming weeks? Probably.

Nvidia one day chart 20th June 2024

June 20, 2024September 12, 2025

The unloved stock market rally: exploring why many investors are hesitant to embrace this record-breaking run

The unloved rally: A paradox

The S&P 500 and Nasdaq have been reaching all-time highs with remarkable frequency, notching nearly thirty record days in 2024, including four in the past week. Despite this stellar performance, a considerable number of investors remain hesitant. Let’s explore the reasons behind this paradox.

Lingering recession fears

The recollection of the 2022 bear market continues to trouble investors. The swift escalation of monetary policy by the Federal Reserve at that time generated widespread uncertainty and apprehension. This has led many investors to maintain a cautious stance, concerned that the past may repeat, even amidst a surging market. Maybe less of us expected the AI driven stock buying frenzy to scale such highs so quickly?

Scepticism

Investors are inherently sceptical. Amidst a relentless market rally, uncertainty emerges. Can this be sustained? Is a correction looming? This scepticism may hinder investors from wholeheartedly participating in a bull market, despite what the statistics indicate.

Emotional baggage

Investment isn’t solely a game of numbers; it’s equally a matter of emotions (although it shouldn’t be). Investors bearing the scars of past losses may find their emotional baggage weighing heavily on their decisions. The fear of experiencing another market crash can cloud rational judgement, leading them to forgo opportunities for potential gains.

The ‘easy money’

The stock market’s significant rise from the lows of 2022 has convinced some that the phase of ‘easy money’ is over. Investors who did not capitalize on the early stages of the rally might think they have missed out, causing hesitation to engage fully. That’s where I am right now – but waiting for a ‘pullback’.

Navigating the dilemma

For individuals caught between caution and the fear of missing out (FOMO), the following strategies could be considered.

Diversification

Distribute your investments among various asset classes. Diversification serves to reduce risk and acts as a safeguard against the unpredictability of the market.

Long-term perspective

Keep in mind that investing is akin to a marathon, not a sprint. It’s important to concentrate on long-term objectives instead of short-term market movements.

Education

Inform yourself about market cycles, historical patterns, and the effects of monetary policy. This should empower more informed decision-making.

Professional advice

Consult a financial advisor who can guide you based on your individual circumstances and risk tolerance.

Conclusion

The current stock market rally, though not widely embraced, offers both opportunities and challenges. Investors are tasked with finding the right balance between exercising caution and capitalizing on potential growth. As the market climbs, it’s essential to be aware of our biases and emotions. Only then can we approach the rally with a more informed viewpoint.

Disclaimer: This article provides general insights and should not be considered personalised financial advice. Always consult a professional before making investment decisions.

Remember: Always do your own diligent and careful research.

RESEARCH! RESEARCH! RESEARCH!

June 18, 2024September 12, 2025

Nvidia to get 20%+ weighting as ETF fund reportedly plans to acquire $10 billion of shares

Nvidia’s swift ascent is poised to prompt a major technology exchange-traded fund to acquire more than $10 billion in shares of the semiconductor maker, consequently reducing its shareholding in Apple.

The Technology Select Sector SPDR Fund (XLK), which will rebalance soon, is guided by an index that will adjust based on the market cap value at Friday’s close. According SPDR Americas Research, the recalibration will reportedly position Microsoft as the leading stock, followed by Nvidia, and then Apple.

Without caps, each of the three stocks would exceed a 20% weight in the index. However, the index’s diversification rules restrict the total weight that stocks constituting at least a 5% share of the fund can hold.

Consequently, it is anticipated that Microsoft and Nvidia will each approach a 21% weight, while Apple’s share is projected to drop to approximately 4.5%.

This news moved markets on 17th June 2024 and pushed the S&P 500 to a new all-time high. The Nasdaq100 index also relished the news reaching: 19902.75

Nvidia share price 17th June 2024 – one year chart

June 18, 2024September 12, 2025

New all-time highs for S&P 500 & Nasdaq

The S&P 500 climbed on Monday 17th June 2024, closing at a new record high aided by the substantial weighted rebalancing of an ETF.

The index concluded at 5473, while the Nasdaq Composite soared to 17857. The Dow Jones Industrial Average gained 188.94 points, finishing at 38778.

These gains occurred after XLK announced it was rebalancing its fund in favour of Nvidia. The major technology exchange-traded fund will get 20% weighting and billions in investor demand it was announced.