Happy record highs, everyone — confetti, champagne, and yet another all-time high. The Nasdaq 
IXIC and the S&P 500 
SPX just did it again — notched fresh closing records that have traders flexing their P&Ls like it’s 1999.
If you’ve been on the sidelines, you’re probably staring at the chart asking: How did we add trillions to market cap while my grocery bill still looks like a high-yield bond payment?
Good question. Because these days, stocks are behaving like they live on a separate planet from the actual economy (looking at you, Nvidia
NVDA).
Let’s pop the hood and see what’s revving this record-breaking machine — and what potholes might lurk ahead.
🤫 Nasdaq: The Comeback Kid of 2025
Take the Nasdaq CompositeIXIC — your favorite tech playground — up a mind-boggling 32% since the April lows. One-third of its total value was minted in three months — as much as $7 trillion added in.
What happened? Well, start with the obvious: the Magnificent Seven are doing the heavy lifting again. NvidiaNVDA, Microsoft 
MSFT, Apple 
AAPL, Amazon 
AMZN, Alphabet 
GOOGL, Meta 
META, Tesla 
TSLA — they’re the gym rats of this rally.
But here’s the kicker: while the headlines are all “index record highs,” the Mag 7 as a whole are actually down slightly for the year. The hero’s cape belongs mostly to a few standouts: Meta, up 21% this year. Microsoft, up 17%. And Nvidia? Not bad: up a whopping 65% since the April swoon.
When the generals lead, the army follows — at least until they don’t?
🤖 S&P 500: Powered by 7, Dragged by 493
The broad-based S&P 500 also clocked a new record close at 6,173.07. Everyone loves to toast a new all-time high, but here’s your buzzkill: the “500” in S&P 500 is a bit of a myth these days.
The Magnificent Seven alone account for more than 30% of the index’s total weight. Last year, this elite club rose 57% while the other 493 stocks crawled up just 13%. Strip out the hyper-scalers, and you’ll find most stocks are still limping along, wrestling with tepid growth and stubborn inflation.
So yes — the S&P 500 is soaring. But the S&P 493? Not partying at the same rooftop bar.
💼 Conflicting Data: This Economy Ain’t It (Yet)
Here’s where it gets spicy: GDP actually shrank last quarter — down 0.5% year over year. Inflation is still running hot with May’s PCE figure at 2.7% (the Fed’s target is 2%).
Fed boss Jay Powell and the central bank squad are trying to thread the world’s tiniest policy needle: cut rates enough to juice the economy, but not so much that they stoke a fresh inflation flare-up.
Meanwhile, job numbers are a mixed bag, and corporate revenue hasn’t been setting new records to match those ceiling-high stock valuations.
In short, the disconnect between equity prices and economic reality is growing wider than the spread on your favorite meme coin during an illiquid Sunday afternoon.
👨🏻💻 Tariffs, Tweets, and the Trump Factor
And who could forget the wildcard factor? Trump’s new tariffs. The “reciprocal tariffs,” as he likes to pitch them. One day he’s threatening to slap 50% duties on everything from French wine to German cars. The next, he’s cozying up for “productive” chats with Brussels.
This policy whiplash makes supply chains sweat, but so far, equity traders are shrugging it off — and even cheering. Why? Because in Trump’s world, chaos means central banks might cut rates to cushion the blow. And nothing says “rocket fuel” for risk assets like lower borrowing costs.
Add to that the weird paradox that tariffs — while inflationary in the short run — can also weaken the dollar if the Fed turns dovish. A weaker greenback means US tech giants look cheaper to global investors. So… up we go.
🏛️ The Great Fed Cut Watch
Speaking of cuts: the Fed’s next meeting is in late July, and Wall Street is holding its breath. Rate cuts mean cheaper money — which often means traders load up on risk.
The market is currently pricing in a 90% chance of a cut in September (and an 80% chance of a hold in July). Meanwhile, gold
XAUUSD — the non-yielding safe haven — is selling off while traders are flocking toward the risk-end of the boat, leaving the safe-haven corner gathering dust.
👀 What’s Next? The Inevitable Hand-Wringing
So — should you pop champagne? Depends.
If you’re a trend follower, record highs are record highs. Momentum is your friend. But if you’re a value purist, these multiples probably make your eye twitch.
Big question: when does this all get too frothy? Will the next earnings season justify these valuations? Markets are forward-looking anyway — even if big tech’s revenue flops, that doesn’t mean money will flow out of the market cap.
After all, we’re halfway through the year and that means it’s time to pop open the Earnings calendar for those spring reports.
Any dip right now may very well be seen as an opportunity to swoop in at a lower price, not as something that indicates there’s something fundamentally wrong with the business.
🫶🏻 The Takeaway: Celebrate, but Stay Focused
The rally is real. The headlines are dazzling. But the same lessons apply: trends don’t last forever, risk doesn’t disappear just because the chart is green, and the Magnificent Seven won’t carry the world on their backs indefinitely.
So have your stop losses placed right, your position sizes sensible, and your eyes on the macro backdrop. Because record highs are fun, but holding the bag isn’t.
Off to you: Are you riding this rocket or waiting for the next dip? Drop your take below — are we so back, or about to crack?
IXIC and the S&P 500 SPX just did it again — notched fresh closing records that have traders flexing their P&Ls like it’s 1999. If you’ve been on the sidelines, you’re probably staring at the chart asking: How did we add trillions to market cap while my grocery bill still looks like a high-yield bond payment?
Good question. Because these days, stocks are behaving like they live on a separate planet from the actual economy (looking at you, Nvidia
NVDA). Let’s pop the hood and see what’s revving this record-breaking machine — and what potholes might lurk ahead.
🤫 Nasdaq: The Comeback Kid of 2025
Take the Nasdaq Composite
IXIC — your favorite tech playground — up a mind-boggling 32% since the April lows. One-third of its total value was minted in three months — as much as $7 trillion added in. What happened? Well, start with the obvious: the Magnificent Seven are doing the heavy lifting again. Nvidia
NVDA, Microsoft MSFT, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META, Tesla TSLA — they’re the gym rats of this rally.But here’s the kicker: while the headlines are all “index record highs,” the Mag 7 as a whole are actually down slightly for the year. The hero’s cape belongs mostly to a few standouts: Meta, up 21% this year. Microsoft, up 17%. And Nvidia? Not bad: up a whopping 65% since the April swoon.
When the generals lead, the army follows — at least until they don’t?
🤖 S&P 500: Powered by 7, Dragged by 493
The broad-based S&P 500 also clocked a new record close at 6,173.07. Everyone loves to toast a new all-time high, but here’s your buzzkill: the “500” in S&P 500 is a bit of a myth these days.
The Magnificent Seven alone account for more than 30% of the index’s total weight. Last year, this elite club rose 57% while the other 493 stocks crawled up just 13%. Strip out the hyper-scalers, and you’ll find most stocks are still limping along, wrestling with tepid growth and stubborn inflation.
So yes — the S&P 500 is soaring. But the S&P 493? Not partying at the same rooftop bar.
💼 Conflicting Data: This Economy Ain’t It (Yet)
Here’s where it gets spicy: GDP actually shrank last quarter — down 0.5% year over year. Inflation is still running hot with May’s PCE figure at 2.7% (the Fed’s target is 2%).
Fed boss Jay Powell and the central bank squad are trying to thread the world’s tiniest policy needle: cut rates enough to juice the economy, but not so much that they stoke a fresh inflation flare-up.
Meanwhile, job numbers are a mixed bag, and corporate revenue hasn’t been setting new records to match those ceiling-high stock valuations.
In short, the disconnect between equity prices and economic reality is growing wider than the spread on your favorite meme coin during an illiquid Sunday afternoon.
👨🏻💻 Tariffs, Tweets, and the Trump Factor
And who could forget the wildcard factor? Trump’s new tariffs. The “reciprocal tariffs,” as he likes to pitch them. One day he’s threatening to slap 50% duties on everything from French wine to German cars. The next, he’s cozying up for “productive” chats with Brussels.
This policy whiplash makes supply chains sweat, but so far, equity traders are shrugging it off — and even cheering. Why? Because in Trump’s world, chaos means central banks might cut rates to cushion the blow. And nothing says “rocket fuel” for risk assets like lower borrowing costs.
Add to that the weird paradox that tariffs — while inflationary in the short run — can also weaken the dollar if the Fed turns dovish. A weaker greenback means US tech giants look cheaper to global investors. So… up we go.
🏛️ The Great Fed Cut Watch
Speaking of cuts: the Fed’s next meeting is in late July, and Wall Street is holding its breath. Rate cuts mean cheaper money — which often means traders load up on risk.
The market is currently pricing in a 90% chance of a cut in September (and an 80% chance of a hold in July). Meanwhile, gold
XAUUSD — the non-yielding safe haven — is selling off while traders are flocking toward the risk-end of the boat, leaving the safe-haven corner gathering dust.👀 What’s Next? The Inevitable Hand-Wringing
So — should you pop champagne? Depends.
If you’re a trend follower, record highs are record highs. Momentum is your friend. But if you’re a value purist, these multiples probably make your eye twitch.
Big question: when does this all get too frothy? Will the next earnings season justify these valuations? Markets are forward-looking anyway — even if big tech’s revenue flops, that doesn’t mean money will flow out of the market cap.
After all, we’re halfway through the year and that means it’s time to pop open the Earnings calendar for those spring reports.
Any dip right now may very well be seen as an opportunity to swoop in at a lower price, not as something that indicates there’s something fundamentally wrong with the business.
🫶🏻 The Takeaway: Celebrate, but Stay Focused
The rally is real. The headlines are dazzling. But the same lessons apply: trends don’t last forever, risk doesn’t disappear just because the chart is green, and the Magnificent Seven won’t carry the world on their backs indefinitely.
So have your stop losses placed right, your position sizes sensible, and your eyes on the macro backdrop. Because record highs are fun, but holding the bag isn’t.
Off to you: Are you riding this rocket or waiting for the next dip? Drop your take below — are we so back, or about to crack?
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Share TradingView with a friend:
tradingview.com/share-your-love/
Read more about the new tools and features we're building for you: tradingview.com/blog/en/
tradingview.com/share-your-love/
Read more about the new tools and features we're building for you: tradingview.com/blog/en/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.