Broader U.S. financial markets are at an interesting juncture, with the S&P 500 (SPX) and tech-heavy NASDAQ (NDX) scaling new highs this month. The SPX has soared by 8.1% year-to-date and by nearly 29% over the past year.
The rally has led to a number of investor favorites hitting all-time highs this month. The AI wave has pushed chip majors NVIDIA (NASDAQ:NVDA), Micron (NASDAQ:MU), and Taiwan Semiconductor (NYSE:TSM) to record levels. Retail majors Costco (NASDAQ:COST) and Walmart (NYSE:WMT), tech giants Meta (NASDAQ:META) and Coinbase (NASDAQ:COIN), as well as weight loss market favorite Novo Nordisk (NYSE:NVO), have also clawed their way to new highs.
Interestingly, this rally in equities has come in tandem with Gold (XAU-USD) and Bitcoin (BTC-USD) scaling muti-year peaks. Both gold and Bitcoin are largely seen as safe-haven assets during times of crisis. The year 2024 is largely expected to be one filled with uncertainty and seesawing market trends.
Still, factors such as the looming U.S. elections, elevated interest rates, geopolitical tensions in the Middle East and Ukraine, and a weak Chinese economy have largely failed to put a dent in the AI-fueled equity rally this year.
The gains come on the back of an anticipated rise in business productivity (thanks to AI), leading to higher corporate profits. Additionally, recent comments from Fed Chair Jerome Powell have kept the case for a rate cut in June intact.
Which Are the Best Stocks to Buy?
According to Fortune, the S&P 500 notched its 16th year-to-date all-time high yesterday. With rate cuts now within line of sight, the rally possibly looks set to continue. However, scouting for pockets of opportunity when markets are at all-time highs can be a challenging task. We employed the TipRanks Stock Screener to look for top-rated names with a market capitalization of over $200 billion that offer the highest potential upside. Analysts expect a lucrative upside of over 40% in both Walmart and AstraZeneca (NASDAQ:AZN) over the next 12 months.
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