S&P 500/Nasdaq Melt-Up on Tech, Positioning Unwinds Amid ME Drag
Key Questions
What drove the S&P 500 and Nasdaq to records?
Tech stocks like TSLA (+7.6%) and Unity (+35% rev) powered the rally. Futures rose post-PPI miss and Hormuz developments.
What factors are fueling the equity melt-up?
Volatility crush, negative real rates, and dollar weakness are driving the melt-up. Positioning unwinds and mechanical factors, not just fundamentals, contribute.
How has the Nasdaq performed recently?
Nasdaq is up 60% since Liberation Day selloff and 100% in 3 years, outpacing U.S. GDP growth by 15%. This indicates a significant market disconnect.
What changes at Berkshire Hathaway under Greg Abel?
Greg Abel has led Berkshire for 100 days with early changes as BRK dips slightly. Shifts occur amid broader equity rally and TGA liquidity.
What lingering concerns affect the rally?
TGA liquidity and U.S. debt questions persist despite the rally. Russell capex and ME drags add caution.
Records driven by tech (TSLA +7.6%, Unity +35% rev), futures up post-PPI/Hormuz flush; melt-up via vol crush/real rates negative/dollar bleed, Russell capex; Berkshire Abel 100-day changes as BRK dips slightly; TGA liquidity/debt questions linger.