Demand for stocks rises as S&P 500 surges

Last week, the S&P 500 reached a record high for the first time since February. In an attempt to take advantage of this surge, traders are purchasing stocks that are expected to surpass the gains of the index, Bloomberg reports. 

Chris Murphy, strategist at Susquehanna International Group, believes risk appetite has been fueled by growing fears of missing out on the US stock market rally. He projects equities prices to rise despite tensions in the Middle East and concerns about slowing economic growth and corporate earnings in the United States. Traders were actively buying shares of Nvidia, Uber Technologies, Tesla, and Robinhood Markets last week, Murphy notes.

Optimism over US trade deals pushed stock indexes to record highs. However, Bank of America strategists warn of the risk of a speculative bubble due to a significant inflow of funds into equities fueled by expectations of interest rate cuts by the Federal Reserve. The upcoming second-quarter earnings season in the US could also weigh on the recent stock market gains, especially given the lackluster outlook, Bloomberg says.