Eseandre Mordi
The U.S. stock market is putting together an impressive run in 2025, with the S&P 500 climbing more than 20% since early April to reach 6,840 points by the end of October. The rally reflects growing investor confidence driven by supportive fiscal policies, cooling inflation, and solid corporate earnings across most sectors.
Market Momentum Builds After April
According to trader The Kobeissi Letter, the index has posted a 16.5% gain year-to-date and surged over 20% since April 2, when pro-growth policy measures were rolled out. The chart reveals a sharp rebound after a spring dip, followed by steady upward movement through the summer and fall months.
The trend remains clearly bullish—higher highs, higher lows, and solid support holding above 6,000. This pattern confirms sustained buying pressure, particularly in tech and industrial stocks, which have been leading the charge.
What's Driving the Rally
Several forces are working together to push stocks higher. Deregulation and targeted tax breaks have sparked renewed business investment and corporate optimism. At the same time, inflation has cooled enough to take pressure off the Federal Reserve, reducing fears of aggressive rate hikes. Corporate earnings have exceeded expectations through the third quarter, giving investors concrete reasons to stay bullish. Meanwhile, capital has been rotating out of bonds and into equities as yields have stabilized, adding fuel to the rally.
Outlook
With the index approaching the 7,000 mark, markets are watching closely to see if the momentum can carry into 2026. If earnings hold up and inflation stays under control, there's room for stocks to move higher. But any surprise on the policy front or a resurgence in inflation could quickly test this year's gains.
For now, the S&P 500's 20% advance since April stands as one of the defining market stories of 2025, reflecting renewed confidence in the U.S. economy and a risk-on mindset among investors.
Eseandre Mordi
