Not only American shares broke new records, when the S&P 500 index had eight weeks of growth in ad. Recently, however, other stock indexes have also been in line with the world’s oldest stock index, the Dow Jones, the Nasdaq technology index, and the South Korean Kospi index. The main engine of growth is the boom around artificial intelligence, which drives the rise of IP manufacturers, memory technologies, data centers and AI-related infrastructure. Better-than-expected corporate results of American companies for the first quarter of this year, declining volatility of options in the main indexes, and hopes for calming geopolitical tension also contributed to investor optimism. After months of uncertainty, software companies are also coming back to the fore, having had the strongest month in the last 25 years. Although there are still debates about a high price action, the technical indicators confirm the strength of the growing trend. Invest in a bag and keep an eye on whether the record growth does not signal the course of a sharp correction, then hand in hand with a more pressing threat in the form of inflation. You will find out more in the following link. Stock markets continue to grow in waves, and even the growing number of warnings about a possible correction, related to the changing potential threat from outside inflation, currently does not worry investors. Last week, the main American index S&P 500 recorded its eighth week of growth in ad, which represents its strongest growth series since the beginning of 2023. Since the beginning of this year, the index has added 10% to its values, and for the whole year of 2025 it has grown by 18%. In addition, the American indices Nasdaq and Dow Jones also reached new historical highs. The technology index Nasdaq has gained 15% since the beginning of this year, and the Dow Jones index has increased by 6% over the same period. The South Korean stock market has been significantly appreciated this year. There, the main Kospi index hovers around equal to 8,476 points and has thus increased by a pleasant 100% since the beginning of the year. Such a strong growth is to a certain extent the result of extraordinary investor interest in technology companies, especially in shares of semiconductor manufacturers and memory ips. South Korean giant Samsung Electronics and SK Hynix, which are among the world’s largest players in this segment, have made a significant difference in this index. One of the main drivers of the current growth of some global technology companies is the rapid development of artificial intelligence (AI) and the associated infrastructure. The largest technology companies are currently investing hundreds of billions of dollars in building data centers, in the development of new AI systems and in the development of computing infrastructure as part of the so-called capex, or capital expenditures. Which creates an enormous demand first for peak IPs and memory technologies. Among other things, we also addressed this topic not too long ago. What industry and specific company will it be from the beginning of the year? Some of the companies that first switched to the production of IP memory saw growth of 400% since the beginning of the year, such as Sandisc, Micron and the changing South Korean duo Samsung and SK Hynix. With that, even semiconductor manufacturers such as AMD, Intel and Arm saw a sharp appreciation reaching 300% during the first five months of the year. This segment is one of the most powerful segments of the global stock market. The positive change in investor sentiment in recent weeks has also benefited the software sector. The latter was already under pressure during the year due to fears that generative artificial intelligence could gradually replace some traditional software products and licensed services, such as the paid packages of Microsoft 365 from the technological hegemon Microsoft. Investors and traders, especially during the first quarter of the year, warned that this type of service could be made significantly cheaper by AI and could even replace it completely. Investors were therefore extremely cautious in technology/software companies such as Microsoft or Adobe. In the last few weeks, however, the situation has changed significantly, and after the chapter, even in this industry, it has begun to return somewhat, albeit very slowly. Some of the so-called SaaS companies (Software as a service or software as a service) began to gradually increase their values after several months. The result was the strongest mass growth of software companies in the last 25 years. Which indicates that the market will increasingly perceive AI as a potential problem, not specifically as a threat to software companies. The results for the first quarter of this year, or so-called Earnings, gave support to the stock markets. Although there was visible caution among investors and prices were not too high, some of the large American companies managed to beat preliminary estimates. Hopes for an easing of geopolitical tension also contribute to the improvement of market conditions, as investors are closely following the progress of diplomatic negotiations between the USA and Russia, which could contribute to a stable situation on the energy markets. As a result, optimism could be manifested both by a drop in oil prices and by them the imports of American government bonds. As is often the case for stock markets in general, it is a relatively positive environment. The improvement in sentiment is also confirmed by the development of the volatility of options in some major indices, such as the S&P 500 index, which has noticeably decreased in recent trading weeks. The VIX volatility index, often referred to as an indicator of fear on Wall Street, weakened by 8.36% in the course of the last trading week and twice closed below the 17-point mark. Historically, the stupid example, when the VIX hovered around 15 points, often accompanied the first record high of the S&P 500 index. The falling volatility then indicates that investors currently perceive the environment as relatively stable and are thus willing to accept the current level of risk. How is the S&P 500 index currently developing and how to prepare for possible declines? At the end of May, the S&P 500 index reached 7,600 points. From the point of view of technical analysis, the closest support levels can be found around 7,330 and 7,275 points. However, according to Povaovna, the magick level of 7,000 points is beyond the long-term limit. Consequently, a fall below these values could open up space for a potential correction, which has been very dark not only among market participants in recent weeks and beyond. This is mainly due to the expected increase in the rate of inflation in the economies of the Euro-Atlantic zone and also in South-East Asia. So far, during the first five months of the summer year, the company created employees in the field of IP production, semiconductor and memory technologies. all of these companies from this industry have thus reaped profits exceeding 75% since the beginning of the year. In the past five months of this year, some companies participating in the construction of infrastructure for artificial intelligence and data centers were equally successful. Although stock markets are reaching new record highs and valuations of many companies are reaching high levels, most of the technical indicators still point to a good trend. However, it is also appropriate to mention again that after such an impressive growth, it is good not to forget about diversification and, in addition to growth technology stocks, also include defensive companies or so-called counter-cyclical stock stocks in the stock portfolio. These stay during similar periods of volatility and falling market declines, including resistant non-cyclical equity titles. Therefore, it is appropriate to stock the portfolio, if it is possible to add these counter-cyclical stocks as efficiently as possible, to at least partially eliminate the sharp market declines that may occur, as we have recently noticed, for example, in the course of the last trading session.
Petr pirit has been dealing with current developments not only in financial markets for more than nine years. In the field of analytical activities, the company Bidli specializes in the real estate and mortgage market, energy and investments. He also deals with stock and commodity markets and monetary policy. Regular articles and analyzes are published on these topics and branches. He then worked for several years at one of several large brokerage companies. It was precisely at the birth of yesterday’s economic ideas and news.
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