Where we are: S&P 500 futures are trading at 7558.00, up 22.75 points or 0.30%, and testing the upper end of today’s 7530.00-7570.00 range. This follows a positive close in the S&P 500 cash market at 7519.10, a gain of 7.30 points. Sentiment remains buoyant after yesterday’s record closing highs driven by AI enthusiasm.
What’s driving it: The AI narrative continues to underpin the market, with Goldman strategists raising their S&P 500 target to 8,000 based on AI and strong earnings expectations. This, coupled with Micron joining the $1 trillion club, is feeding into the ongoing rally. While the latest Fed minutes don’t offer immediate catalysts, the underlying US economic backdrop remains supportive, with tech leading the charge.
- Goldman Sachs raised its S&P 500 target to 8,000, citing AI and earnings strength.
- Micron’s market capitalization surpassed $1 trillion, buoying chip sector sentiment.
- CFTC data shows net non-commercial positioning at -134,906 contracts, modestly short but near the 60th percentile, which doesn’t suggest immediate squeeze risk.
NY session focus: All eyes will be on Salesforce earnings after the bell, which are expected to either confirm or challenge the prevailing AI-driven optimism. Key levels to watch are 7530.00 as initial support and 7570.00 as immediate resistance. The trade that’s working is long tech, specifically AI-related stocks, while the trade at risk is short volatility. The pain trade would be a sudden correction driven by disappointing earnings or a hawkish surprise from the Fed speakers down the line. Keep an eye on the US 10Y, currently at 4.468%, as further declines could fuel the rally.