US stock indices are experiencing significant gains ahead of the long weekend, with the Dow Jones Industrial Average reaching historic highs above 50,800 points. The US500 is also approaching record levels, marking its eighth consecutive week of gains, the longest winning streak since 2023. This market optimism coincides with a decline in the VIX volatility index, attributed to falling oil prices and positive signals from Iran regarding peace negotiations.
The rally is primarily driven by artificial intelligence stocks, which have surged 56% since early March, while the broader market remains relatively flat. Corporate liquidity is robust, with US stock buybacks and M&A activity exceeding $1 trillion in 2026. However, certain sectors are under pressure, notably Chinese tech stocks facing regulatory scrutiny and biotech firms grappling with disappointing trial results.
A key takeaway for market professionals is the Fed’s shift under new Chair Kevin Warsh, who emphasizes flexibility and aggressive GDP growth strategies. This pivot, combined with a hawkish stance from board members, could influence market dynamics and investor sentiment in the coming months.
Source: xtb.com