SPX: in an optimistic moodIt was a good week for the S&P 500, which managed to gain each day during the previous week, surging by around 5% on a weekly basis. Positive market sentiment was supported by easing of trade tariffs tensions between the US and China. It should be also noted that the US Administration signed significant partnerships with countries in the Middle East, mostly in the field of technology and further support to AI development. These agreements will ensure that US companies, mostly in the AI and tech industry, will secure trillions of US Dollars in investments within the next couple of years. In this sense, the US tech companies gained during the week, with Nvidia as a leader in the chip industry, surging around 16% on a weekly basis. META was traded higher by some 8%, Apple surged by 6%, while Microsoft gained modest 3% on a weekly basis.
Analysts are noting that the markets are currently re-thinking the stagflation risks, which was previously priced during the peak of US-China trade tariffs tensions. This was the major catalyst for the positive sentiment during the previous week, and easily might support its continued optimism also in the weeks ahead. Still, it should be considered that the US equity market continues to be vulnerable to fundamentals, especially toward the news related to trade tariffs. Such fundamentals might bring some short term volatility, however, general positive sentiment is currently holding.
