Have you ever hung out with two people with two different reactions to the same circumstance? For instance, imagine that you’re at a college football game, the weather sours, and the rain begins to pour down. One person may get a negative attitude and become frustrated that their clothes are getting wet. Conversely, another person may embrace the rain, with the mindset that the inclement weather may add some excitement to the game while also understanding that rain is just not that bad. After all, most of us take showers each day and get wet by choice.
“We suffer more often in imagination than reality.” ~ Seneca
That’s kind of what’s happening in the stock market. Two different reactions to the same situation, but in this case, many investors are the ones frustrated by the rain. The above metaphor works for the stock market because things are just not all that bad. Unemployment is near historic lows, GDP increased at an annual rate of 3.8%, and inflation is near historic norms.
Despite the uncertainty surrounding the government shutdown and retraction of the Trump tariffs, the major indices are hovering within a stone's throw of all-time highs.
Even after the early 2025 "Liberation Day” panic, the tech-heavy Nasdaq 100 has been on fire, up about 23% so far. And the story isn’t slowing down – stocks could actually rise higher as we head into year end. Here’s why:
Investors are still scared…and that’s bullish.
More . . .
------------------------------------------------------------------------------------------------------
Only $1 for AI Stock Access
Artificial Intelligence (AI) is just starting to skyrocket from $40 billion to $1.3 TRILLION in revenue in 10 years, igniting many tech stocks along the way. You can be among the first to Zacks’ newest stock that will be revealed Monday morning. This company is putting advanced AI into the hands of millions. It could have much more upside than even NVIDIA through the end of 2025.
Special opportunity ends at midnight Sunday, November 9.
Start Access Now for $1 >>
------------------------------------------------------------------------------------------------------
It might seem weird, but the average investor isn’t celebrating. According to CNN’s Fear/Greed Index, people are still stuck in “Fear” mode. Basically, everyone is cautious, maybe even skeptical, which-paradoxically-is often a good sign for the market. When most people are nervous, it can mean there’s still plenty of buying power waiting on the sidelines.
Q4 historically provides juicy returns...
If history tells us anything, it’s that the fourth quarter is usually the best time of year for stocks. Since 1950, Q4 has outperformed other quarters consistently. Stocks often dip a bit in Q3 (which we already experienced) but hit a bottom around October 27th, then start climbing again. Add in “window dressing” by big institutional investors trying to make their portfolio look good before year-end, and you’ve got extra rocket fuel for a market rally.
“You’re only as good as your last fight. It’s just the way things are. It’s the way the sport is built.” ~ Andre Ward
Earnings are beating expectations...
Like professional MMA or boxing, Wall Street is a game of expectations and “What have you done for me lately?” That’s good news for investors because companies are reporting strong results, and investors are taking notice. In fact, about 70% of S&P 500 companies have beat sales estimates-the highest level in four years. Earnings surprises are also strong: 85% of benchmark companies beat expectations. Keep an eye on big names like AMD, CoreWeave, Arm, Meta, and Apple-they may provide more of this positive momentum as they report earnings.
“It isn’t the mountains ahead that wear you out, it’s the pebble in your shoe.” ~ Muhammad Ali
Trade tensions are easing...
The infamous Ali quote brilliantly teaches us that it’s the persistent annoyances and obstacles that cause the most frustration and wear people down. For Wall Street, the most persistent challenge has been the US-China trade war. Though the market has brushed off the fears, it continuously seems to rear its ugly head again.
But there’s good news: the US and China recently came to a 1-year trade agreement, and XI and Trump are expected to meet again soon.
The Fed Is Getting Dovish...
Fed Chair Jerome Powell recently cut interest rates after a long pause. Historically, S&P 500 returns tend to do really well after such a move. Lower rates make borrowing cheaper, help companies grow, and usually push stock prices higher. In other words, its kayaking down a river with the current at your back (it’s much easier).
Betting Markets Suggest the Government Shutdown Could End in November
Prediction markets like Polymarket have been eerily accurate at calling major events. They nailed President Trump’s victory last November, correctly foresaw Elon Musk’s Tesla pay package getting approved, and even anticipated the current government shutdown. Unlike politicians, who often have agendas behind their talking points, betting markets reflect real money and real expectations. Right now, traders on Polymarket, which just landed a major investment from Intercontinental Exchange (ICE), are giving a 92% chance that the shutdown wraps up by November 30th.
Airline Stocks Are Hinting at the Same Thing
There’s another interesting signal: airline stocks. The FAA has already warned that it may need to scale back flights at more than 40 airports ahead of Thanksgiving if the shutdown drags on. In theory, that should be terrible for airlines. Yet despite all the volatility in the market this week, stocks like American Airlines (AAL), United (UAL), and Delta (DAL) are all up. As Stanley Druckenmiller likes to say, “The inside of the stock market is the best economic indicator I know.” If airlines are green in the middle of this mess, it suggests investors aren’t pricing in a long, painful shutdown.
Putting It Altogether...
Even though investors might still be nervous, the stars are aligning for a strong finish to 2025. Easing trade worries, a Fed willing to support growth, and solid earnings reports are all pointing to a potential melt-up. And as the bull market heats up, the spotlight is on AI innovators -- the fastest growing corner of the market right now.
Top Market Moves to Watch Right Now
One of the strongest trends in the market is the resurgence of the tech sector. And it’s no surprise that the rapid expansion of Artificial Intelligence is driving a lot of the momentum in that space.
This trend could be extremely lucrative for both shorter-term traders and long-term investors, even with the market near record highs.
Today, I invite you to look inside the portfolio I'm managing, Zacks Technology Innovators.
We don't nail every pick but have recently closed winners like +64.9%, +118.8% and even +211.3% in just 2 months.¹
And we’re expecting more outsized gains in the months ahead.
In fact, I'm about to add a stock to the portfolio that has exceptional upside.
In addition to its head start in the fast-growing AI industry, it also has its hands in other hot growth industries such as autonomous driving and the cloud. As if that weren't enough, it benefits from a dirt-cheap valuation and a high reward-to-risk technical setup.
You can be among the first to see this fresh pick and get aboard when it's posted Monday morning. Plus, you'll also have the chance to immediately access all the live picks inside the Technology Innovators portfolio.
Bonus Report: When you check out our Technology Innovators portfolio, you may also download our Special Report, Beyond AI: The Quantum Leap in Computing Power.
As AI reshapes industries, quantum computing promises to redefine the very limits of computational possibility. This Special Report explores the cutting-edge developments in this emerging field and reveals 7 key stocks positioned to benefit from the radical technology.
Don't wait. The total cost to see all Zacks tech stocks (and other recommendations) for 30 days is an astonishing $1. There's not a cent of further obligation. Deadline for this unique opportunity is midnight Sunday, November 9.
Click for $1 Stock Access and Bonus Special Report >>
All the Best,
Andrew Rocco
Andrew is Zacks' technology stock strategist. His passion is making money on stocks and providing education with valuable insights from both a fundamental and technical perspective. He invites you to explore 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
Why Stocks Will Keep Rising Even While Investors Stay Nervous
Have you ever hung out with two people with two different reactions to the same circumstance? For instance, imagine that you’re at a college football game, the weather sours, and the rain begins to pour down. One person may get a negative attitude and become frustrated that their clothes are getting wet. Conversely, another person may embrace the rain, with the mindset that the inclement weather may add some excitement to the game while also understanding that rain is just not that bad. After all, most of us take showers each day and get wet by choice.
“We suffer more often in imagination than reality.” ~ Seneca
That’s kind of what’s happening in the stock market. Two different reactions to the same situation, but in this case, many investors are the ones frustrated by the rain. The above metaphor works for the stock market because things are just not all that bad. Unemployment is near historic lows, GDP increased at an annual rate of 3.8%, and inflation is near historic norms.
Despite the uncertainty surrounding the government shutdown and retraction of the Trump tariffs, the major indices are hovering within a stone's throw of all-time highs.
Even after the early 2025 "Liberation Day” panic, the tech-heavy Nasdaq 100 has been on fire, up about 23% so far. And the story isn’t slowing down – stocks could actually rise higher as we head into year end. Here’s why:
Investors are still scared…and that’s bullish.
More . . .
------------------------------------------------------------------------------------------------------
Only $1 for AI Stock Access
Artificial Intelligence (AI) is just starting to skyrocket from $40 billion to $1.3 TRILLION in revenue in 10 years, igniting many tech stocks along the way. You can be among the first to Zacks’ newest stock that will be revealed Monday morning. This company is putting advanced AI into the hands of millions. It could have much more upside than even NVIDIA through the end of 2025.
Special opportunity ends at midnight Sunday, November 9.
Start Access Now for $1 >>
------------------------------------------------------------------------------------------------------
It might seem weird, but the average investor isn’t celebrating. According to CNN’s Fear/Greed Index, people are still stuck in “Fear” mode. Basically, everyone is cautious, maybe even skeptical, which-paradoxically-is often a good sign for the market. When most people are nervous, it can mean there’s still plenty of buying power waiting on the sidelines.
Q4 historically provides juicy returns...
If history tells us anything, it’s that the fourth quarter is usually the best time of year for stocks. Since 1950, Q4 has outperformed other quarters consistently. Stocks often dip a bit in Q3 (which we already experienced) but hit a bottom around October 27th, then start climbing again. Add in “window dressing” by big institutional investors trying to make their portfolio look good before year-end, and you’ve got extra rocket fuel for a market rally.
“You’re only as good as your last fight. It’s just the way things are. It’s the way the sport is built.” ~ Andre Ward
Earnings are beating expectations...
Like professional MMA or boxing, Wall Street is a game of expectations and “What have you done for me lately?” That’s good news for investors because companies are reporting strong results, and investors are taking notice. In fact, about 70% of S&P 500 companies have beat sales estimates-the highest level in four years. Earnings surprises are also strong: 85% of benchmark companies beat expectations. Keep an eye on big names like AMD, CoreWeave, Arm, Meta, and Apple-they may provide more of this positive momentum as they report earnings.
“It isn’t the mountains ahead that wear you out, it’s the pebble in your shoe.” ~ Muhammad Ali
Trade tensions are easing...
The infamous Ali quote brilliantly teaches us that it’s the persistent annoyances and obstacles that cause the most frustration and wear people down. For Wall Street, the most persistent challenge has been the US-China trade war. Though the market has brushed off the fears, it continuously seems to rear its ugly head again.
But there’s good news: the US and China recently came to a 1-year trade agreement, and XI and Trump are expected to meet again soon.
The Fed Is Getting Dovish...
Fed Chair Jerome Powell recently cut interest rates after a long pause. Historically, S&P 500 returns tend to do really well after such a move. Lower rates make borrowing cheaper, help companies grow, and usually push stock prices higher. In other words, its kayaking down a river with the current at your back (it’s much easier).
Betting Markets Suggest the Government Shutdown Could End in November
Prediction markets like Polymarket have been eerily accurate at calling major events. They nailed President Trump’s victory last November, correctly foresaw Elon Musk’s Tesla pay package getting approved, and even anticipated the current government shutdown. Unlike politicians, who often have agendas behind their talking points, betting markets reflect real money and real expectations. Right now, traders on Polymarket, which just landed a major investment from Intercontinental Exchange (ICE), are giving a 92% chance that the shutdown wraps up by November 30th.
Airline Stocks Are Hinting at the Same Thing
There’s another interesting signal: airline stocks. The FAA has already warned that it may need to scale back flights at more than 40 airports ahead of Thanksgiving if the shutdown drags on. In theory, that should be terrible for airlines. Yet despite all the volatility in the market this week, stocks like American Airlines (AAL), United (UAL), and Delta (DAL) are all up. As Stanley Druckenmiller likes to say, “The inside of the stock market is the best economic indicator I know.” If airlines are green in the middle of this mess, it suggests investors aren’t pricing in a long, painful shutdown.
Putting It Altogether...
Even though investors might still be nervous, the stars are aligning for a strong finish to 2025. Easing trade worries, a Fed willing to support growth, and solid earnings reports are all pointing to a potential melt-up. And as the bull market heats up, the spotlight is on AI innovators -- the fastest growing corner of the market right now.
Top Market Moves to Watch Right Now
One of the strongest trends in the market is the resurgence of the tech sector. And it’s no surprise that the rapid expansion of Artificial Intelligence is driving a lot of the momentum in that space.
This trend could be extremely lucrative for both shorter-term traders and long-term investors, even with the market near record highs.
Today, I invite you to look inside the portfolio I'm managing, Zacks Technology Innovators.
We don't nail every pick but have recently closed winners like +64.9%, +118.8% and even +211.3% in just 2 months.¹
And we’re expecting more outsized gains in the months ahead.
In fact, I'm about to add a stock to the portfolio that has exceptional upside.
In addition to its head start in the fast-growing AI industry, it also has its hands in other hot growth industries such as autonomous driving and the cloud. As if that weren't enough, it benefits from a dirt-cheap valuation and a high reward-to-risk technical setup.
You can be among the first to see this fresh pick and get aboard when it's posted Monday morning. Plus, you'll also have the chance to immediately access all the live picks inside the Technology Innovators portfolio.
Bonus Report: When you check out our Technology Innovators portfolio, you may also download our Special Report, Beyond AI: The Quantum Leap in Computing Power.
As AI reshapes industries, quantum computing promises to redefine the very limits of computational possibility. This Special Report explores the cutting-edge developments in this emerging field and reveals 7 key stocks positioned to benefit from the radical technology.
Don't wait. The total cost to see all Zacks tech stocks (and other recommendations) for 30 days is an astonishing $1. There's not a cent of further obligation. Deadline for this unique opportunity is midnight Sunday, November 9.
Click for $1 Stock Access and Bonus Special Report >>
All the Best,
Andrew Rocco
Andrew is Zacks' technology stock strategist. His passion is making money on stocks and providing education with valuable insights from both a fundamental and technical perspective. He invites you to explore 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.