Market Call: A Meltup For All Seasons

The stock market has been melting up since late October 2023, when investors concluded that the Fed was done raising interest rates. It melted up during the fall and winter. We think it might continue to do so in the spring and summer. It could be a meltup for all seasons.

Leading the S&P 500 stock price index to a new record high on Friday was the S&P 500 Information Technology sector. It includes three of the MegaCap-8, namely Apple, Microsoft, and Nvidia. It is up 32% since October 26, 2023 to a new record high. Also at a new record high is the S&P 400 MidCap Information Technology sector, which is up 36% since October 30, 2023 (chart). There are no MegaCaps in this index. So the market has been broadening in this sector for sure.