SP 500 closes in on record high as tech rallies

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorS&P 500 closes in on record high as tech rallies'Equities have room to move higher over the next six to 12 months amid resilient economic growth and robust earnings'Author of the article:Investors have gotten too bearish on stocks, with earnings expected to remain robust and the surge in bond yields looking increasingly stretched, according to one analyst. Photo by Michael Nagle/Bloomberg via Getty ImagesTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe S&P 500 approached a record as a gauge of megacaps rose 1.4 per cent. Political upheaval in Europe and fiscal worries sent the euro to its weakest since May 2025, boosting the dollar’s haven appeal. Treasury 10-year yields hit the highest since 2002. Brazilian assets jumped as investor favourite Flávio Bolsonaro became the front-runner to win the presidential election runoff.This advertisement has not loaded yet, but your article continues below.Markets have absorbed rising rates, high energy costs and renewed inflation concerns, with stocks continuing to advance. Strong earnings, consumer spending and sustained artificial intelligence-related investment have all kept growth intact, according to Principal Asset Management.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“There’s plenty for investors to worry about, but earnings continue to be the counterweight,” said Mark Hackett at Nationwide. “What’s encouraging is that the strength isn’t a fluke. We’re seeing a healthy combination of growth and margin expansion.”Rates are becoming “more punitive” and expectations are high, but companies have outgrown those pressures, he said.Investors have gotten too bearish on stocks, with earnings expected to remain robust and the surge in bond yields looking increasingly stretched, according to JPMorgan Chase & Co.’s Mislav Matejka.“Relative equity-market calm amid the bond market’s ‘perfect storm’ is understandable, given accelerating economic growth and the AI boom’s rate insensitivity,” said Lisa Shalett at Morgan Stanley Wealth Management.This advertisement has not loaded yet, but your article continues below.At Morgan Stanley, Michael Wilson noted that a drop in United States stock valuations has left some areas looking attractive as earnings growth shows few signs of waning. The extent of the pullback has created a “better setup” for sectors linked to the economic cycle, he said.“Equities have room to move higher over the next six to 12 months amid resilient economic growth and robust earnings,” said Ulrike Hoffmann-Burchardi at UBS chief investment office. “But the path is unlikely to be smooth.”Elsewhere, U.S. oil dropped below US$90. President Donald Trump is preparing to ease limits restricting the use of a tax-exempt variety of diesel, his latest bid to pare costs for the essential fuel.Corporate Highlights:SpaceX is proposing to build a natural gas pipeline in Florida to deliver fuel for its Starship rockets launched from Cape Canaveral.Intel Corp. fell after a report on discussions of a potential collaboration between Taiwan Semiconductor Manufacturing Co. and Elon Musk’s Terafab initiative, which the U.S. chipmaker joined in April.Cerebras Systems Inc. rallied after OpenAI chief executive Sam Altman said the company is a “close partner,” and the two firms have a deep engagement pushing on the frontiers of speed.CH Robinson Worldwide Inc. agreed to buy trucking brokerage firm RXO Inc. in a deal centred around a bet that artificial intelligence can help the companies improve efficiency in a challenging freight market.Nvidia Corp. partner Hon Hai Precision Industry Co. reported better-than-expected quarterly revenue, signalling sustained and elevated spending on global AI infrastructure.What Bloomberg Strategists say…“The upcoming earnings season is set to show a continued improvement in breadth, with the S&P 493 on pace to outgrow the Magnificent Seven on earnings for the first time in years.”—Tatiana Darie, Macro Strategist, Markets Live.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.