Summer RALLY-2025: What’s Driving #SP500 and #NQ100 Higher?

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Dear readers, earlier on June 25, 2025, in our article “Unexpected Surges and Drops in the Indices” we noted the U.S. economy’s readiness for bullish sentiment.

On August 12, 2025 #SP500 climbed above 6,400, and #NQ100 hit a new high above 23,800 as U.S. inflation came in softer than expected, prompting the market to believe in an imminent Fed rate cut — money became “cheaper,” making stocks more attractive. Tech giants and all things AI — chips and cloud — are in high demand and lead the gains. Many companies have reported earnings above forecasts, and buybacks are underway, supporting prices. A weaker dollar is also boosting the revenues of multinational corporations. As a result, investors are buying more aggressively, pushing indices to new records.

5 Reasons Why #S&P500 and #NQ100 Could Hold Their Ground Until the End of 2025:

Dovish Fed. Rate cuts → cheaper money → higher valuations.

AI and data center boom. Growing demand for chips, cloud, and software lifts the tech sector.

Profits + buybacks. Companies beat forecasts and repurchase shares → EPS growth and price support.

Low yields and weaker dollar. Stocks look more attractive than bonds; exporters earn more easily.

Domestic investment in the U.S. Localized production and infrastructure fuel demand for tech and industry.

The foundation of #SP500 and #NQ100 growth is profit. The earnings season added confidence: market participants liked the “breadth” of earnings beats and the resilience of margins among major issuers — the third pillar of the current rally. According to FreshForex, soft inflation and expectations of a Fed rate cut create a window of opportunity for long positions in #SP500 and #NQ100.

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