Investors are still pouring money into the US stock market, even as the S&P 500 approaches record highs and risks persist. Key threats include the looming end of Donald Trump’s tariff pause, signs of a slowing US economy, and ongoing geopolitical tensions, Bloomberg reports.
As noted by Julian Emanuel of ISI, the market’s rally has been fueled by investors’ fear of missing out on potential gains. What’s especially striking, he says, is that this frenzy is happening amid ongoing economic uncertainty.
Bloomberg reports individual investors were the net buyers during this period. While the S&P 500 showed weakness and institutional money managers took profits, they kept piling into shares of tech giants.
The tech sector also leads in projected earnings growth. Analysts forecast an 8% profit increase for S&P 500 companies in 2025, with information technology expected to show the strongest gains at nearly 21%.
As Keith Lerner of Truist Advisory Services points out, investors are betting on sectors with long-term growth potential, particularly artificial intelligence.