Bloomberg forecasts S&P 500’s surge driven by tech sector

Tech giants, which dragged down the S&P 500 in April, are now fueling a recovery in US stocks. Traders expect companies such as Nvidia and Microsoft to drive the index higher in the near future, Bloomberg reports.

The S&P 500 is now just 4% shy of its February record high, supported by easing trade tensions and robust earnings from Big Tech. According to the news agency, the rally highlights continued strong demand for cloud services, software, and electronics.

Since April, Tesla has surged 56%, with Nvidia and Microsoft shares jumping 40% and 30% respectively. Meanwhile, the Bloomberg index tracking the Magnificent Seven stocks has been outperforming the S&P 500 for eight consecutive weeks. Notably, these tech giants account for a third of the index and have driven nearly half of its 19% rally since April, Bloomberg highlights.

However, the agency’s analysts note that Apple and Amazon, which are vulnerable to tariff risks, continue to drag on the Big Tech's performance, limiting its overall growth potential.