"Investors are having a hard time avoiding FOMO". S&P 500 on track for first record since January

The S&P 500 broad market index may close at a record high for the first time since January amid investor optimism about a possible truce between the U.S. and Iran and strong corporate reporting, Bloomberg writes.

S&P 500 added almost 0.4% on Wednesday, April 15. On the previous day, it was less than 1% short of its all-time high. At the end of March, the index was near the technical correction zone, declining by more than 9% from its January peak above 7,000 points.

The main contribution to growth on April 15 was made by shares of financial and technological sectors, the agency notes. Among the leaders was chipmaker Broadcom, whose quotations jumped by 3% after Meta Platforms expanded its partnership with it.

The Nasdaq Composite technology sector index jumped 0.9%. The Dow Jones Industrial Average blue-chip index fell 0.4%.

Signs of easing tensions in the Middle East, as well as optimism around artificial intelligence technology and corporate results - key drivers of growth in the U.S. stock market - are forcing skeptical investors to abandon their cautious stance, Bloomberg notes. According to the Associated Press, the U.S. and Iran are close to extending a temporary truce that expires on April 22 and resuming talks on a long-term peace agreement, despite continued uncertainty over the situation in the Strait of Hormuz.

Additional support for the market was provided by the return of interest in risky assets from algorithmic funds, which earlier reduced the share of shares to lows for several years, the agency points out. Such systematic investors are expected to be able to channel record volumes of funds into U.S. equities, Goldman Sachs traders noted in early April.

"Investors are having a hard time ignoring FOMO (fear of missing out). This only reinforces the 'buy on drawdowns' strategy that has worked well in recent years," said market strategist Matt Maley of analyst and brokerage firm Miller Tabak + Co.

According to BTIG Chief Technical Strategist Jonathan Krinsky, easing tensions in the Middle East are creating conditions for continued market growth. "Investors will certainly become more constructive. There are a number of signals indicating that the market will not return to retesting the lows anytime soon," he believes.

At the same time, some traders remain cautious: "I don't think the conflict is over. There are a lot of uncertainties," said Brent Schutte, investment director of Northwestern Mutual Wealth Management, on CNBC. That said, he said there remain plenty of long-term opportunities in the market for investors to look at. Northwestern is revisiting its favorites, while the medium- to long-term potential is greatest in stocks that have grown weaker in recent years and remained in the shadow of a limited set of market leaders, Schutte said.

This article was AI-translated and verified by a human editor