Last week delivered what bulls have been waiting for since February: fresh all-time highs in U.S. stock indices, with the Nasdaq blazing the trail higher. This isn't just any rally—it's a growth-driven surge that signals the market's real appetite for risk is back.
The outperformance of growth sectors since the April 7 low has been building momentum for weeks, and after last week's breakout, this trend is accelerating into what could be a powerful third quarter.
Take a look at this...
Growth is Accelerating into Q3
The sector leaderboard tells the story perfectly. Communications and technology are leading the charge, with industrials and financials close behind. Take a moment to appreciate what's missing from this list: not a single defensive sector in sight. That's pure bullish conviction.
Tech came roaring back last week, slightly outpaced by communications—though there's significant overlap between these sectors, so their tandem strength makes perfect sense. Semiconductors led the charge within tech, confirming what I've been calling the Great Tech Reset. This isn't just a bounce; it's a fundamental shift as the sector shakes off months of uncertainty and reasserts its growth leadership.
There’s a reason why I’ve been going with the idea of a Great Tech Reset, because it is one. On Friday, I discussed how semiconductors were leading the surge higher within tech especially.
But perhaps the most encouraging development over the past week was how energy completely fell off the leaderboard. Now we have Fed Chair Powell reopening the idea of rate cuts later this year.
Will this be the final bull run before everything comes crashing down? Can we really grow our way out of this financial and economic mess? Time will tell, but in the meantime, keep buying the dip.
I’ll keep you posted,
-Gianni