Markets open on Friday with bullish momentum. The Dow added 0.85% on Thursday to enjoy seven straight days of gains. Meanwhile, the S&P 500 (SPY) added 0.51% to rise above 5,200 again. Is this too good to be true? The U.S. Central Bank has no immediate plans to cut interest rates. Markets are instead pivoting their hopes of rate cuts in Canada, the U.K., and other countries.
The U.S. benefits from a strong economy and healthy currency. Other countries, like Japan, will see their currency devalue further as investors park their money in U.S. currency. Additionally, U.S. debt pays over 5.2% in interest income, risk-free.
The S&P 500’s 5,200 level is not too good to be true. The index is up on a rebound in shares of Apple (AAPL) and Tesla (TSLA). The ongoing strength in Amazon (AMZN), Microsoft (MSFT), and Nvidia (NVDA) will continue. Investments in artificial intelligence solutions will continue this year and beyond.
In addition to holding the big tech firms listed on the index, investors may hold Berkshire Hathaway (BRK-B) and Eli Lilly (LLY). LLY stock has strong prospects as sales of obesity drugs continue to climb.
Visa (V) and Mastercard (MA) have a weighting of around 1% each on the index and are both attractive stocks to hold for the long term.