U.S. stocks approach historic highs, funds are quietly shifting direction

【Chain Wen】The US stock market is extremely hot right now. The S&P 500 index has approached its all-time high, just about 1% away from breaking through 7000 points for the first time, and it’s about to hit an 8-month winning streak— a record not seen since 2017-2018.

Senior advisor Paul Nolt of Murphy & Sylvest Wealth Management straightforwardly states: “The bulls have an absolute advantage.” His logic is simple—unless a black swan event occurs, the most likely path for the stock market is to continue upward.

This year’s US stock performance has indeed been fierce. The S&P 500 has risen nearly 18%, and the Nasdaq has surged even more, climbing 22%. However, recently there’s an interesting phenomenon: the tech stocks that have been leading the market are starting to weaken, while other sectors are thriving. Anthony Saglimbene, chief strategist at Ameriprise Financial, pointed out that this indicates funds are shifting—moving toward sectors with lower valuations.

Next week, there are two events worth paying attention to. One is the Federal Reserve meeting minutes, as the market is speculating about when the Fed will cut interest rates next. The other is how Trump will appoint a new Federal Reserve Chair to succeed the current one; any movement in this area could influence the direction of the stock market.