The S&P 500 has surged 23 percent since its April lows, now just a few points away from its all-time high of 6,144 set in February. The tech-heavy Nasdaq is also within reach of its December 2024 record, supported by strong performance in technology stocks.

• Easing Tariff Concerns Boost Market Confidence
Markets have stabilized as trade tensions, especially with China, have quieted. The Trump administration’s recent deal with China helped calm investor anxiety. However, the upcoming July 9 deadline for the 90-day tariff pause remains a potential source of volatility.

• Tech Stocks Continue to Lead the Rebound
The so-called Magnificent 7 tech giants, including Nvidia, Apple, and Amazon, are driving market gains. Nvidia hit a record high this week, regaining its status as the world’s most valuable company. AI-related companies like Micron Technology have also shown strong momentum. Together with financial stocks, these sectors now make up over 40 percent of the S&P 500.

• Expectations of Fed Rate Cuts Add Optimism
The Federal Reserve held interest rates steady in June but signaled that two rate cuts are possible later this year. A first cut could happen as early as the July 30 meeting, but September appears more likely. Lower rates are seen as supportive for stock prices by improving liquidity and reducing borrowing costs.

• What’s Next?
Despite ongoing risks such as geopolitical tensions and unresolved trade issues, the market’s strong rebound reflects investor confidence in technology growth and potential monetary easing from the Fed. However, I believe caution is still essential. A sudden change in trade negotiations or inflation dynamics could trigger renewed volatility.