S&P 500 rises as Dow, Nasdaq fall with Fed’s fee path in focus

Buyers proceed to be bullish on shares.

Based on Financial institution of America’s newest fund supervisor survey launched on Tuesday, money ranges have fallen to 15-year lows as merchants double down on equities.

“Lengthy Magnificent 7” stays probably the most crowded commerce, in keeping with 56% of respondents, adopted by the US greenback and crypto.

However Huge Tech hasn’t completely been the intense star kicking off 2025.

To this point this 12 months, Meta (META) is the one one of many Magnificent Seven tech shares to outperform the benchmark S&P 500 (^GSPC) after rising for 20 straight days. It is presently on observe to interrupt that streak, although, with shares down almost 3% in early commerce on Tuesday.

And as Yahoo Finance’s Josh Schafer identified, the variety of corporations outpacing the index’s roughly 4% acquire has soared to begin the 12 months.

Trying on the cross-asset efficiency in 2025, buyers within the BofA survey now view international equities because the best-performing asset (34% versus 21% in January), overtaking US equities (18% versus 27%). Gold sits within the center at 22%, with the safe-haven asset presently buying and selling close to document highs.

Nonetheless, sure dangers stay. Some 42% of survey respondents categorized a worldwide commerce struggle because the No. 1 threat for belongings this 12 months. Individually, almost 40% mentioned a recessionary commerce struggle is the most important “tail threat,” forward of inflation that results in Fed fee hikes and the potential of an AI bubble.