The S&P 500's 5 largest companies all exceed top and bottom-line estimates in their June quarter reports. Tech giants: Apple AAPL, Amazon AMZN, Facebook FB, Alphabet GOOGL, and Microsoft MSFT drive roughly 23% of the S&P 500. These 5 innovation-driven enterprises makeup 47% of the tech-driven Nasdaq 100 and have pushed this index to all-time highs today.
Tech's robust Q2 results are rippling optimism through the equity markets. The S&P 500 is trading at its highest level since the COVID-crisis began, only 2% off its all-time high.
Can this tech-driven momentum continue to drive the stock market to continuously new highs?
Will the equity markets completely discount this year's medically induced economic coma?
There is still quite a bit of pain and uncertainty ahead with a wave of bankruptcies and foreclosures looming. We need cyclical names like energy, utilities, and financials to join in on this rally for the stock market’s surge to continue.
This big win by big tech has put a tailwind in the market's sails. Let us see how far it takes stocks.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.