The S&P 500 index has reached new heights this year, driven by advancements in the tech sector, particularly in AI. Art Hogan, Chief Market Strategist at B. Riley Wealth, believes that the index’s rally will continue, expanding into sectors such as energy, finance, utilities, and industrials in the second half of the year. He predicts stronger-than-expected GDP growth in the second quarter and expects the Federal Reserve to initiate an interest rate cut in September.
Hogan points out that while tech giants like Nvidia, Microsoft, and Apple have played a significant role in the index’s rise, other sectors will start to contribute more substantially, leading to a broader market recovery. He emphasizes the importance of overall economic growth and earnings momentum in sustaining the market’s upward trend.
Regarding the Federal Reserve’s upcoming decisions, Hogan anticipates that the central bank will make its first rate cut in September, following a shift in sentiment from earlier expectations of multiple rate cuts. He believes that investors now prioritize economic data and earnings performance over immediate rate cuts, indicating a more confident stance in the market’s resilience.
Overall, Hogan remains optimistic about the market’s outlook, citing positive economic indicators and ongoing earnings growth as key drivers for future expansion. With a diverse range of sectors expected to drive market performance, he suggests that the market will continue to thrive throughout the rest of the year.
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https://finance.yahoo.com/video/markets-perform-well-without-nvidia-202526810.html