The S&P 500 Index Approaches All-Time High as Funds Rotate into Lower-Valued Sectors
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The US stock market is currently at historic highs, with the S&P 500 index just about 1% away from surpassing 7,000 points for the first time, and is on track to achieve eight consecutive months of gains, marking the longest monthly winning streak since 2017-2018. Paul Nolte, Senior Wealth Advisor at Murphy & Sylvest Wealth Management, stated that unless an external unexpected event occurs, the path of least resistance for the stock market remains upward. The Federal Reserve meeting minutes will become the market focus next week, as investors closely watch for clues on when the Fed might further cut interest rates. Meanwhile, news that President Trump has nominated a new Federal Reserve Chair to replace Powell could also impact market trends. The S&P 500 has risen nearly 18% so far this year, while the Nasdaq has gained 22%. The technology sector has recently underperformed, with capital flowing into lower-valued sectors. Anthony Saglimbene, Chief Market Strategist at Ameriprise Financial, commented that market funds are shifting toward sectors with more moderate valuations.
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