S&P 500 Nears Record as AI Stocks Lead Rally — SkimNews
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- The S&P 500 has traded sideways since June 1 without slipping more than 3% from a record high, spending nearly all of its time since Aug. 4 inside the range of a single day's rally to a record, per Santoli's analysis.
- The Philadelphia Semiconductor Index weathered a 30% drawdown, chopped sideways for two months, then recently broke above its downtrend and the 50-day moving average — though it remains 15% off its peak.
- Meta Platforms launched its Muse AI agent app and Nebius raised rental rates on AI computing access, sparking the 2% Nasdaq Composite surge on Monday as tactical traders scrambled for call-option exposure.
- Fed Chair Powell said financial conditions remain too loose and suggested he might need to remove another 'dose of accommodation' or two, even as the Nasdaq hit new highs, bond yields eased, and the VIX slipped under 15.
- Goldman Sachs' John Flood told 'Closing Bell Overtime' that light professional positioning, elevated Nasdaq short interest, and persistent earnings momentum skewed risk-reward higher into year-end.
- Bank of America and Goldman Sachs said this quarter would see deceleration in trading and investment banking, while momentum, leverage, and crowding in the AI-buildout trade are unlikely to return to June's extremes.
- Meta shares haven't made a new high in 13 months, and on Monday's session — with the S&P 500 up 1.5% — the NYSE logged 160 new 52-week lows against just 29 fresh highs, underscoring the market's narrow leadership.
Why it matters: The bull market entering its fifth year now has to 'earn its gains through profits rather than multiples' (per BCA Research), with Bank of America and Goldman flagging Q3 trading and IB deceleration and Powell signaling more tightening — meaning a thin equity cushion leaves the rally vulnerable if AI earnings disappoint or financial conditions tighten further.
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