The S&P 500 set fresh intraday and closing record highs last week, advancing 13% year to date, while the Dow Jones Industrial Average gained 12%. The tech sector, including many AI-related stocks and semiconductors, is up 22% year to date, making it the second best-performing sector behind energy’s 34% rally. However, momentum has recently rotated toward healthcare and financials, which gained 18% and 13% respectively over the past three months, while tech gained just 5%. Bank of America strategist Arjun Goyal noted bubble-like dynamics despite the VIX closing below 15, and recommends investors stay exposed to equities via S&P 500 call options, specifically the 7,900 strike calls expiring in September.
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