The U.S. stock market has experienced a significant rise since April 8, with the NASDAQ up 38%, the S&P 500 28%, the Russell 2000 29%, and the Dow 19%. This “melt-up” is nearing its fifth consecutive month of gains, an unprecedented achievement, especially in August, typically a weak month for markets. Analysts suggest that if the Federal Reserve cuts interest rates as expected, it could further boost market conditions.
Positive factors contributing to this market trend include renewed optimism following new trade agreements with several countries, diminishing tariff uncertainties, moderating inflation—supported by a stronger U.S. dollar and lower energy prices—and a declining trade deficit, reported at $60.2 billion against a forecast of $62.6 billion. A significant reduction in imports has also contributed to this figure, enhancing U.S. economic growth prospects.
Market analysts are forecasting potential GDP growth of 5%, emphasizing the importance of stability and growth in economic conditions, and highlight the technological advancements in artificial intelligence as a catalyst for future growth.
