S&P 500 Index Approaches Historic Levels with Support from Nvidia: The S&P 500 index is approaching the 5490-point level,
marking the 31st record high this year.
In this context, 10-year Treasury yields fell seven basis points to 4.21%.
Bank of America’s institutional clients continued to invest in U.S. stocks for the second consecutive week.

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Rising Semiconductor Stocks

Bond Rally

Mixed Data

Infusion of Funds into the Stock Market

Hedging Against Risks

Rising Semiconductor Stocks

The rise in semiconductor stocks has driven Wall Street stock indices to another record high,
with traders betting that the Federal Reserve’s potential interest rate cuts will continue
to fuel the industry that has boosted the stock market this year.
The S&P 500 index approached the historic 5500-point level.
Nvidia became the most valuable company in the world, surpassing Microsoft and extending its record stock gains for the year.
An optimistic analyst predicted that the company’s value, which is at the heart of the AI boom,
could reach nearly $5 trillion next year, up from about $3.3 trillion.

Bond Rally

Bonds surged as traders flocked to buy $13 billion worth of 20-year Treasury bonds.
Wall Street saw the release of mixed economic data showing increased U.S. industrial production,
supported by a broad-based recovery in factory output. Retail sales rose sharply, with previous months’ figures being revised downward.
Federal Reserve officials emphasized the need for evidence that inflation has subsided before cutting interest rates.

Mixed Data

Anthony Saglimbene of Ameriprise said, “Investors should look at the half-full glass but recognize macroeconomic conditions,
as well as the nuances between corporate and consumer earnings and incoming economic data,
may develop in ways that could lower asset prices in the near term.”
The S&P 500 index is approaching the 5490-point level, marking the 31st record high this year.
Nvidia’s stock rose 3.5% after Rosenblatt Securities analyst Hans Mosesmann raised the target price
for the chipmaker to the highest on Wall Street at $200, up from $140.
Ten-year Treasury yields fell seven basis points to 4.21%.

Infusion of Funds into the Stock Market

Institutional clients of Bank of America continued to invest in U.S. stocks for the second consecutive week,
focusing on technology and social media stocks, according to strategists, including Jill Carey Hall,
in a note to clients.
Separately, a bank survey showed that global investors will likely continue pouring money into record-breaking stock markets.
When asked about the asset class that would benefit most from reallocating money market funds,
32% of participants chose U.S. stocks, 19% said the funds would go to global stocks,
and a quarter indicated they would buy government bonds.

Hedging Against Risks

There is currently little significant doubt in the market
that could curb enthusiasm for rising U.S. stocks supported by a small group of tech stocks.
However, some investors are increasingly seeking ways to hedge against concentration risks.
With the market hitting new records, this concentration becomes more pronounced.
Companies called “The Magnificent Seven” (Microsoft, Nvidia, Apple, Meta, Amazon, Alphabet, Tesla)
have contributed more than 60% of the S&P 500 index’s returns this year.

S&P 500 Index Approaches Historic Levels with Support from Nvidia

S&#038;P 500 Index Approaches Historic Levels with Support from Nvidia

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S&P 500 Index Approaches Historic Levels with Support from Nvidia