Broadening Horizons: Will U.S. Stock Rally Extend Beyond Tech Giants?
The U.S. stock market rally's reliance on tech giants like Nvidia is set to be tested as investors await earnings reports from other companies. While the S&P 500 has surged 16% in 2024, only a fraction of its stocks have outperformed. Upcoming earnings season may catalyze a broader market participation.
![Broadening Horizons: Will U.S. Stock Rally Extend Beyond Tech Giants?](https://devdiscourse.blob.core.windows.net/aiimagegallery/29_05_2024_19_08_33_3799552.png)
The reliance of the U.S. stock market rally on tech giants such as Nvidia will face scrutiny as investors prepare for upcoming earnings reports from a broader range of companies. This year, the S&P 500 has risen by 16%, though only a select few stocks have driven this increase.
According to BofA Global Research strategists, merely 24% of the S&P 500 stocks outperformed the index in the first half of the year. Investors will look closely at the upcoming earnings season to see if profit growth extends to companies beyond the usual tech-related leaders.
Art Hogan, chief market strategist at B Riley Wealth, believes the second-quarter earnings season could initiate broader market participation. As more companies are projected to report improved earnings, the market could see gains spreading out, boosting stocks with moderate valuations.
(Disclaimer: With inputs from agencies.)
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