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LivestreamMenuStocks have been able to take almost all of the curve balls thrown their way without a hitch. The S & P 500 last week set fresh intraday and closing record highs, alongside the Dow Jones Industrial Average . Year to date, the benchmarks have advanced 13% and 12%, respectively. Strong performances have come despite the continuing U.S.-Iran war and sharp increases in oil prices that ensued. Stocks tied to artificial intelligence have mostly outperformed. Yet Bank of America’s derivatives research team wonders if those companies can continue their strong charge – or if the baton will be passed to other names. “Despite the [Cboe Volatility Index] closing below 15 last Friday as the S & P hit all -time highs, signs of bubble-like price action persisted beneath the surface,” wrote strategist Arjun Goyal, noting volatility in S & P 500 options rose sharply last week. “While the combination of these bubble -like dynamics and a strong earnings backdrop suggests risks may remain skewed to the upside, uncertainty around market leadership persists, namely whether the next leg higher is driven by tech or a continued broadening into other pockets of the market,” he said in a note Tuesday. .SPX YTD mountain SPX in 2026 The S & P 500 technology sector, including many of the stocks in the AI trade – including semiconductors – is up 22% in 2026. That’s the second best-performing sector of the year behind energy, which has soared 34%. Over the past three months, however, momentum has shifted toward healthcare and financials. In that time, those groups have jumped 18% and 13%, respectively, while tech has gained just 5%. The question for investors now: Will this performance shift stick? And, if so, could it derail the broader market’s performance? Despite the uncertainty, Goyal thinks investors should stay exposed to equities via S & P 500 call options. Specifically, the 7,900 strike calls set to expire in September.Read More
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