Viewpoint: Chip stocks have become the new driving force behind the US stock market bull run, with the S&P 500 expected to surpass 8,000 points
BlockBeats reported that on July 7, The Kobeissi Letter published an article stating that it currently believes the S&P 500 Index is preparing to break above 8,000 points. The reason is that chip stocks have quietly become the new leading sector of this bull market.
Although many of the "Magnificent Seven" US stocks have fallen more than 20% from their recent highs, semiconductor stocks have already taken over as the market leaders. Since the beginning of this year, 8 out of the 10 best-performing stocks in the S&P 500 index are from the chip industry.
Despite the weakening of large-cap tech stocks that have led the market since 2022, the S&P 500 is currently only about 1% below its all-time high. This is the first time since 2022 that the market is rising under the leadership of sectors outside of the "Magnificent Seven", while the "Magnificent Seven" are trending in the opposite direction.
It believes this rotation is positive, as the "Magnificent Seven" are preparing to take the lead again. As large-cap tech stocks start to regain leadership and semiconductors continue to outperform or even if they cool down, the S&P 500 is expected to rise above 8,000 points. Asset holders will continue to benefit.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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