economy
AI's domination is raising concerns about the bull. But the rally is starting to broaden out
The broadening out of the market rally should continue, as earnings and technical factors turn constructive, investors hope.
TL;DR
- The S&P 500 on an equal-weight basis has reached all-time highs.
- A ceasefire in Iran tempered oil prices and lifted market segments previously pressured by conflict.
- Both the Magnificent Seven and other S&P 500 companies reported their fastest profit growth since 2021.
- A broadening rally suggests the bull market is more sustainable and offers more investment opportunities beyond AI.
- Consumer discretionary stocks are noted as potentially cheap and attractive from a risk-reward perspective.
- The market-cap-weighted S&P 500 might be due for consolidation after recent gains.