If 2025 has taught us anything, it’s that Wall Street’s moods can change faster than Florida weather. Just six months ago, the market was in full-blown panic mode after President Trump announced his ‘Liberation Day’ tariff plan – a move so aggressive it hadn’t been tried by an American president in a hundred years.
Back in April, everyone from hedge fund legends to Reddit traders called it economic suicide. Some even warned that we were headed for another ‘Black Monday,’ like the one in 1987 when the S&P 500 dropped -20% in a single day.
Fast forward to now, and it feels like we’re living on a different planet. The Nasdaq is up +50% in just six months, thanks mostly to a cooling of tariff-induced fears and AI mania. In fact, Wall Street has transitioned from bracing for a crash to worrying about a bubble.
So where exactly are we in this cycle – and does the past offer any clues?
“This Feels Exactly Like 1999”
Billionaire investor Paul Tudor Jones, one of the legends of the trading world, recently went on CNBC and said that the current market “feels exactly like 1999.” His advice? “Investors need to position themselves like it’s October 1999.
That’s quite the statement. Back then, the Nasdaq doubled between late 1999 and early 2000 before the bubble burst. If Jones is right, there could still be a lot of upside left. He even hinted that this market could be stronger than the one in the dot-com era.
And when Paul Tudor Jones makes historical comparisons, people listen. He famously predicted the 1987 ‘Black Monday’ crash using chart overlays of 1929. His fund returned +125% that year. And now, if you overlay the 1999 chart with 2025, the similarity is almost spooky.
The Bull Market is Just Getting Started
The rally that began once the tariff drama faded is still pretty young – only a few months old. Historically, bull markets last about four years on average. So if history rhymes, this one could still have plenty of room to run.
Rate Cuts at Record Highs = Rocket Fuel
Then there’s the Fed. Chair Jerome Powell recently cut interest rates while the S&P 500 was hitting new highs – something that’s happened only a dozen times in history. According to JPMorgan, in all 12 of those cases, the market was higher a year later, with a median gain of +15%.
That’s like pouring jet fuel on an already raging fire.
More . . .
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Care to See All Zacks Buys & Sells for $1?
Starting today, for one month, you are invited to see the real-time buys and sells from all our private portfolios for only $1. And you won't be obligated to spend another cent.
These portfolios have closed 207 double and triple-digit gains so far this year. While not all our picks are winners, members saw gains of +220.4%, +627.5%, and even +2,027.7%.¹
Special opportunity ends at midnight Sunday, October 26.
Start Zacks Ultimate Access Now >>
------------------------------------------------------------------------------------------------------
AI Expands Beyond Chips
So far, the biggest winners of the AI boom have been semiconductor stocks like AMD and infrastructure plays, such as CoreWeave and Bloom Energy. But now we’re seeing the next wave – AI’s move into software.
Take Figma and Shopify, for example. Both stocks jumped recently after signing deals with OpenAI.
• Figma is integrating ChatGPT directly into its design tools.
• Shopify’s deal lets ChatGPT users buy products directly through AI chat, skipping the traditional e-commerce flow entirely.
That’s a glimpse into the future of conversational commerce, where AI helps consumers shop as easily as chatting with a friend.
Excitement, Yes. Euphoria? Not Yet.
Sure, the Nasdaq is up +50% in six months – that’s enough to make any investor’s pulse race. But we’re not quite at euphoric levels yet.
According to the AAII Sentiment Survey, 33.7% of investors are bullish, 20.3% neutral, and a still-high 46.1% are bearish. Not exactly the kind of “everyone’s getting rich” mindset you see at market tops.
Plus, there’s still about $7 trillion sitting in money market funds – basically cash on the sidelines. If stocks keep climbing, some of that money will eventually flow back into the market, giving the rally even more fuel.
Valuations Are High – But Could Go Higher
One big worry: valuations. The S&P 500 is trading around 23 times earnings, higher than the long-term average, but still nowhere near the dot-com peak of 40X.
Investors today are clearly willing to pay a premium for innovation, especially for companies driving the AI revolution. In that context, current valuations might not be as stretched as they seem.
Bottom Line
The 2025 bull market is one of the most powerful in recent memory. The recovery from the “Liberation Day” panic has been dramatic, but the data still suggests this rally could keep going – maybe even doubling again from here.
If history is any guide, we might just be in the early innings of another unforgettable chapter in market history.
The Best Way to Find Top Picks Today…and Beyond
Today, I'm pleased to offer you full, 30-day, real-time access to every stock and ETF we recommend as part of our celebrated Zacks Ultimate arrangement.
Our expert-led recommendation services are designed to highlight the most promising stocks on the market, including the hottest AI firms, insider trades (the legal kind), home run moves, stocks under $10, earnings surprise stocks, and much more.
The total cost is only $1, and there's no obligation to spend a cent more.
This includes the real-time buy and sell recommendations, along with expert market insights from ALL of Zacks' private portfolio services.
While future success isn't guaranteed, Zacks Ultimate members recently had opportunities to close gains of +198.4%, +220.4%, +627.5%, and an incredible +2,027.7%.¹
Free Bonus Report: You'll also receive our Ultimate Four Special Report which highlights our best 4 stocks to buy in Q4. These 4 stocks are judged by our experts to have the greatest upside this quarter and beyond – and we believe now is the perfect time to get in.
Don't wait. This opportunity ends at midnight Sunday, October 26.
Gain Zacks Ultimate Access and Our Bonus Ultimate Four Special Report Right Now for Just $1 >>
Good Investing,
Andrew Rocco
Technology Stock Strategist
Andrew Rocco is Zacks' Technology Stock Strategist. His passion is making money on stocks along with education, where he aims to provide valuable insights from both a fundamental and technical perspective in his Technology Innovators portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.
Image: Bigstock
The Wild Ride of 2025: From Panic to Euphoria (Almost)
If 2025 has taught us anything, it’s that Wall Street’s moods can change faster than Florida weather. Just six months ago, the market was in full-blown panic mode after President Trump announced his ‘Liberation Day’ tariff plan – a move so aggressive it hadn’t been tried by an American president in a hundred years.
Back in April, everyone from hedge fund legends to Reddit traders called it economic suicide. Some even warned that we were headed for another ‘Black Monday,’ like the one in 1987 when the S&P 500 dropped -20% in a single day.
Fast forward to now, and it feels like we’re living on a different planet. The Nasdaq is up +50% in just six months, thanks mostly to a cooling of tariff-induced fears and AI mania. In fact, Wall Street has transitioned from bracing for a crash to worrying about a bubble.
So where exactly are we in this cycle – and does the past offer any clues?
“This Feels Exactly Like 1999”
Billionaire investor Paul Tudor Jones, one of the legends of the trading world, recently went on CNBC and said that the current market “feels exactly like 1999.” His advice? “Investors need to position themselves like it’s October 1999.
That’s quite the statement. Back then, the Nasdaq doubled between late 1999 and early 2000 before the bubble burst. If Jones is right, there could still be a lot of upside left. He even hinted that this market could be stronger than the one in the dot-com era.
And when Paul Tudor Jones makes historical comparisons, people listen. He famously predicted the 1987 ‘Black Monday’ crash using chart overlays of 1929. His fund returned +125% that year. And now, if you overlay the 1999 chart with 2025, the similarity is almost spooky.
The Bull Market is Just Getting Started
The rally that began once the tariff drama faded is still pretty young – only a few months old. Historically, bull markets last about four years on average. So if history rhymes, this one could still have plenty of room to run.
Rate Cuts at Record Highs = Rocket Fuel
Then there’s the Fed. Chair Jerome Powell recently cut interest rates while the S&P 500 was hitting new highs – something that’s happened only a dozen times in history. According to JPMorgan, in all 12 of those cases, the market was higher a year later, with a median gain of +15%.
That’s like pouring jet fuel on an already raging fire.
More . . .
------------------------------------------------------------------------------------------------------
Care to See All Zacks Buys & Sells for $1?
Starting today, for one month, you are invited to see the real-time buys and sells from all our private portfolios for only $1. And you won't be obligated to spend another cent.
These portfolios have closed 207 double and triple-digit gains so far this year. While not all our picks are winners, members saw gains of +220.4%, +627.5%, and even +2,027.7%.¹
Special opportunity ends at midnight Sunday, October 26.
Start Zacks Ultimate Access Now >>
------------------------------------------------------------------------------------------------------
AI Expands Beyond Chips
So far, the biggest winners of the AI boom have been semiconductor stocks like AMD and infrastructure plays, such as CoreWeave and Bloom Energy. But now we’re seeing the next wave – AI’s move into software.
Take Figma and Shopify, for example. Both stocks jumped recently after signing deals with OpenAI.
• Figma is integrating ChatGPT directly into its design tools.
• Shopify’s deal lets ChatGPT users buy products directly through AI chat, skipping the traditional e-commerce flow entirely.
That’s a glimpse into the future of conversational commerce, where AI helps consumers shop as easily as chatting with a friend.
Excitement, Yes. Euphoria? Not Yet.
Sure, the Nasdaq is up +50% in six months – that’s enough to make any investor’s pulse race. But we’re not quite at euphoric levels yet.
According to the AAII Sentiment Survey, 33.7% of investors are bullish, 20.3% neutral, and a still-high 46.1% are bearish. Not exactly the kind of “everyone’s getting rich” mindset you see at market tops.
Plus, there’s still about $7 trillion sitting in money market funds – basically cash on the sidelines. If stocks keep climbing, some of that money will eventually flow back into the market, giving the rally even more fuel.
Valuations Are High – But Could Go Higher
One big worry: valuations. The S&P 500 is trading around 23 times earnings, higher than the long-term average, but still nowhere near the dot-com peak of 40X.
Investors today are clearly willing to pay a premium for innovation, especially for companies driving the AI revolution. In that context, current valuations might not be as stretched as they seem.
Bottom Line
The 2025 bull market is one of the most powerful in recent memory. The recovery from the “Liberation Day” panic has been dramatic, but the data still suggests this rally could keep going – maybe even doubling again from here.
If history is any guide, we might just be in the early innings of another unforgettable chapter in market history.
The Best Way to Find Top Picks Today…and Beyond
Today, I'm pleased to offer you full, 30-day, real-time access to every stock and ETF we recommend as part of our celebrated Zacks Ultimate arrangement.
Our expert-led recommendation services are designed to highlight the most promising stocks on the market, including the hottest AI firms, insider trades (the legal kind), home run moves, stocks under $10, earnings surprise stocks, and much more.
The total cost is only $1, and there's no obligation to spend a cent more.
This includes the real-time buy and sell recommendations, along with expert market insights from ALL of Zacks' private portfolio services.
While future success isn't guaranteed, Zacks Ultimate members recently had opportunities to close gains of +198.4%, +220.4%, +627.5%, and an incredible +2,027.7%.¹
Free Bonus Report: You'll also receive our Ultimate Four Special Report which highlights our best 4 stocks to buy in Q4. These 4 stocks are judged by our experts to have the greatest upside this quarter and beyond – and we believe now is the perfect time to get in.
Don't wait. This opportunity ends at midnight Sunday, October 26.
Gain Zacks Ultimate Access and Our Bonus Ultimate Four Special Report Right Now for Just $1 >>
Good Investing,
Andrew Rocco
Technology Stock Strategist
Andrew Rocco is Zacks' Technology Stock Strategist. His passion is making money on stocks along with education, where he aims to provide valuable insights from both a fundamental and technical perspective in his Technology Innovators portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.