A tech-led rise has pushed the S&P 500 back to record highs, as global equities gained amid lower stagflation concerns and firm US economic data. US equities moved from the bottom quartile to the middle of global performance rankings.
Over the last 24 hours, global equities and bonds advanced, with the S&P 500 up +0.81% to a new record. The NASDAQ also reached a fresh record, rising +1.03%.
Semiconductors Lead The Surge
The Magnificent 7 index rose +0.26%. Chip shares led the move, with the Philadelphia Semiconductor Index up +4.23%.
The Philadelphia Semiconductor Index has gained +53.7% since 30 March. In after-hours trading, AMD shares jumped +16%, and Super Micro Computer also rose after the US close.
With the S&P 500 pushing past 6,200 to new records, the upward momentum is undeniable. This rally is fueled by strong April jobs data showing 250,000 additions and a cooling CPI of 2.8%, which is taming the stagflation fears we battled last year. We should therefore consider strategies that benefit from this continued strength, especially in the technology sector.
The real power is concentrated in chipmakers, with the Philly Semiconductor Index (SOX) surging above 7,500. This is not a broad market rally but a specific, tech-led charge, similar to what we saw in late 2024. For the coming weeks, buying call options on leading semiconductor names or the SMH ETF allows for leveraged participation in this powerful trend.
Managing Risk While Staying Bullish
This optimism feels quite different from the interest rate uncertainty we saw through much of 2025. Back then, markets were choppy and lacked clear direction, making long-term bullish bets difficult. Now, with the Federal Reserve appearing more dovish, the path of least resistance seems to be higher, at least for the short term.
However, we must remain prudent as markets do not move in a straight line. With the VIX hovering at a low 13, protective put options on the SPX or QQQ are relatively inexpensive. Buying these can be seen as cheap insurance to safeguard profits from any sudden reversal or unexpected geopolitical shock.
Given the high implied volatility in some of the top-performing tech stocks, selling out-of-the-money put credit spreads is also an attractive option. This strategy allows us to collect premium while betting that these market leaders will not drop significantly in the near term. It is a way to generate income from the market’s current strength without being fully exposed to a downturn.
