US Stock Market Surge — S&P 500 and Nasdaq Rally Fueled by Tech Giants
Last week, US stock indexes found themselves firmly in the global spotlight. The S&P 500 recorded its second-largest weekly gain in 2025, now standing just about 3% below its record high set nearly three months ago. This bullish movement was driven by robust demand for shares of leading technology corporations, which once again emerged as the primary growth engine of the US stock market.
The Power of the Tech Giants
The so-called "Magnificent Seven" — including Nvidia Corp. $NVDA, Tesla Inc. $TSLA, and Alphabet Inc. $GOOG — acted as the main catalyst for the current market rally. Shares in these companies advanced over 9% on average during the week, marking their strongest surge since the end of January. The ongoing advance in technology sector stocks further solidifies the trend of recent years, in which innovative IT companies dominate the US equity landscape.
Performance of Major US Stock Indices
The S&P 500 posted a 0.7% daily gain, closing the week with a 5.3% advance, while the Nasdaq 100 leaped by 6.8% over the same period. Notably, this momentum persisted even as lackluster consumer sentiment data was largely shrugged off by the market. This suggests that the dramatic inflow of capital toward major tech companies outweighed concerns about softer macroeconomic indicators.
Key Drivers Behind the Rally
Strong capital inflow into the IT sector: Demand for innovation and artificial intelligence technologies propels companies like Nvidia and Alphabet to the forefront.
High market capitalization of tech giants: In a rapidly changing economic environment, these firms continue to deliver the most sustainable growth.
Market resilience to negative data: Investors remain focused on company prospects, seemingly unphased by weaker economic reports.
The pursuit of new records: The S&P 500’s proximity to its all-time high heightens interest in US equities.
Mid-Term Prospects for the US Stock Market
The recent surge in the S&P 500 and Nasdaq 100 underscores the ongoing appeal of the US stock market, particularly within the technology sector. If current momentum persists, indices could break new records in the near future. The heavy reliance on the performance of the "Magnificent Seven" highlights the outsized influence of these companies on overall market sentiment.
Comments