The S&P 500 index reached an intraday record of 7,844.52 points on Tuesday, closing above the 7,800 mark for the first time. This growth occurred despite a 0.3% decline in September, while the equal-weight version of the index dropped by 4.8% during the same period. Meanwhile, the 10-year Treasury yield exceeded 5.3%, marking its highest level since 2002.
Market analysts are debating whether the current rally can extend beyond the technology sector. Stephanie Link from Hightower Advisors suggests that industrials, financials, utilities, and materials currently offer value. She highlighted a 20-year nuclear power agreement between Google and Constellation Energy, which resulted in a 12% rise in the latter's share price.
Experts from Gilman Hill Asset Management and Capital Wealth Planning note that the market's broadening depends on factors such as interest rate exposure, oil prices, and inflation. Kevin Simpson of Capital Wealth Planning suggests that a potential December rate hike could mark the end of the current cycle if energy costs decline.
Bryn Talkington from Requisite Capital Management warns that further interest rate hikes could stall market expansion. She expects the upcoming earnings season to be dominated by the technology and energy sectors, noting that Nvidia and Micron are projected to contribute one-third of the total earnings growth for the S&P 500.
