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

Buyers proceed to be bullish on shares.

In response to 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 essentially the most crowded commerce, in accordance with 56% of respondents, adopted by the US greenback and crypto.

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

Up to now 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 practically 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 world commerce warfare because the No. 1 danger for belongings this 12 months. Individually, practically 40% mentioned a recessionary commerce warfare is the largest “tail danger,” forward of inflation that results in Fed price hikes and the potential of an AI bubble.