The stock market rally is being led by a new group of winners, shifting away from the dominance of the Magnificent 7 tech giants. The rise of a diverse range of stocks, spanning industries like finance and space, signals a potential regime change in the market. The market experienced a significant downturn due to the trade war initiated by President Trump, but rebounded when tariffs were paused, leading to a record-setting rally. The S&P 500 and Nasdaq saw substantial gains, driven by lowered inflation expectations and positive economic outlook. Nvidia and Palantir have been standout performers in the AI sector, but new leaders like Rocket Lab, SoFi, and Coinbase have outpaced the market significantly. The VanEck Social Sentiment ETF, focusing on high-performing stocks with positive investor sentiment, has seen impressive returns compared to the broader market. The rise of these new market darlings raises questions about whether they signify a lasting change in market leadership or a temporary speculative frenzy. Market analysts are closely monitoring the performance of these next-generation stocks for signs of sustained growth.

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