EBC Markets Briefing | Bull market underway as S&P 500 hits new high

US stocks advanced on Monday as market participants looked ahead to this week's slew of economic data and the Fed's monetary policy meeting. All three major stock indexes advanced, with the S&P 500 closing at another record high. Having increased by more than 4% this year, the Nasdaq 100 led the gains again.

This week marks the busiest slate of the earnings season, with 19% of the S&P 500 reporting earnings. Five of the "Magnificent Seven" tech companies are waiting in the wings.

BlackRock on Monday raised its overall US equities view to “overweight” from “neutral,” and it sees the S&P 500's upward momentum continuing for the next six to 12 months, according to analysis from EBC Financial Research Institute.

The stock market's AI-driven rally should broaden out as inflation falls further, the Fed starts to cut rates, and the market sticks to its rosy macro outlook, according to the world's largest asset manager.

Strong GDP and personal consumption expenditures data have calmed fears of an imminent recession and dimmed hopes that the Fed would begin cutting interest rates as soon as March.

The Nasdaq 100 sits well above the 50 EMA with a strong bullish bias, but the RSI has signaled an overbought condition. As such, buying the dip is a safer call, especially for leveraged positions.

EBC Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Group or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.

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