Stock market near record highs driven by Fed rate cut hopes and strong corporate earnings.

From Benzinga: 2024-06-30 18:02:19

The stock market is booming on expectations of Federal Reserve rate cuts, strong corporate earnings, and potential of AI technology.

The S&P 500 Index is up 14.48% this year and consolidated near record highs of 5,500.

Analysts predict further gains in the second half, with year-end target estimates raised, Evercore ISI predicts the index will close at 6,000.

Concerns about top-heavy market concentration worry investors, with 10 largest stocks accounting for 38% of overall market cap.

Nvidia, Vistra, and other tech and utility companies lead gains in the second quarter, while Walgreens, Intel, and consumer stocks lag.

Positive outlook heading into the second half, with Fed rate cuts expected in September and futures market pricing in a 64% probability.

Ark Invest’s Wood sees a strong rebound potential for smaller and mid-cap stocks post-Great Depression levels of market concentration.

Candidates for outperformance include Bath & Body Works, American Airlines, and other SMID-cap stocks with high upside potential.



Read more at Benzinga: S&P 500 Ends First Half Shy Of All-Time Highs. Here Are The Leaders And Laggards — And 5 Stocks That Could Outperform In Next 6 Months – SPDR S&P 500 (ARCA:SPY)