Will Market Momentum Last Near Record Highs?

Over the past 12 months, the S&P 500 and Nasdaq have risen about 25% and 35%, respectively.
Both indexes are hovering near record highs and trading at historically high valuations.
>>> Mizuho Raises Royal Caribbean Price Target to $380 After Strong Q1
This performance comes amid inflation, geopolitical conflicts, and other macro headwinds. Investors may wonder whether to lock in gains before summer or let winners ride.
What Drove the Rally?
The rapid growth of the artificial intelligence (AI) market has been a key catalyst. It generated tailwinds for cloud infrastructure, data centers, chipmaking, networking, and energy markets.
Stocks like Nvidia, Broadcom, and Alphabet easily outperformed the broader indexes. Their growth offset weaker performance from companies exposed to soaring oil prices and inflation.
Rising oil prices lifted big oil stocks.
>>> Roger Altman Warns Oil Price Spikes Threaten Stock Market Resilience
Meanwhile, surging energy demand from AI and data centers boosted a broader range of energy and electrification stocks.
Should You 'Sell in May and Go Away'?
Some investors consider the old adage "sell in May and go away" in this frothy market.
However, following that strategy has often left money on the table over the long term.
May has a reputation as a bad month due to profit-taking before summer.
But over the past ten years, the S&P 500 and Nasdaq have risen about 260% and 430%, respectively, despite pandemics, inflation, and conflicts.
>>> Bernstein and UBS Raise Delta Air Lines Price Targets on Strong Outlook
Past performance does not guarantee future gains.
Yet the main sectors driving the rally—AI, data centers, and energy—are still firing on all cylinders.
These secular trends are unlikely to cool off soon. Even if non-AI stocks fizzle, the expansion should drive those stocks higher.
For investors with a multi-year horizon, there is little reason to lock in gains now.
>>> XRP Spot ETFs Attract $1.39 Billion Inflow Despite Price Stagnation
Tuning out near-term noise and maintaining faith in top-performing investments may be the wiser approach.
Latest Updates
Mark Cuban Holds Stake in Reading International as FY25 Net Losses Shrink
Wednesday / 05/20/2026, 09:56 EST
Mark Cuban Backs Live Entertainment Stocks Despite Market Challenges
Wednesday / 05/20/2026, 09:48 EST
Harvard Endowment Reduces Bitcoin Stake, Exits Ethereum Entirely
Wednesday / 05/20/2026, 09:40 EST
13D Management Sells Entire Bill.com Stake in Q1 2026
Wednesday / 05/20/2026, 09:32 EST
Evercore ISI Bullish on Apple as Services Business Drives Future Growth Engine
Wednesday / 05/20/2026, 09:24 EST
Nvidia Stock Drops 4.42% Ahead of Q1 FY2027 Earnings Release
Wednesday / 05/20/2026, 09:16 EST
Strategy Buys $2 Billion in Bitcoin After Hinting at Possible Sales
Wednesday / 05/20/2026, 09:08 EST
CFTC Appoints DJ Hennes to Lead Market Participants Division
Wednesday / 05/20/2026, 08:52 EST
NuScale Power Targets AI Data Center Energy Demand with SMR Technology
Wednesday / 05/20/2026, 08:44 EST
Cattle Futures Post Strong Weekly Gains; Hog Downtrend Continues
Wednesday / 05/20/2026, 08:36 EST
SoundHound AI Stock: Bullish Growth vs. Bearish Financial Struggles
Wednesday / 05/20/2026, 08:28 EST
ADAR1 Capital Management Acquires Denali Therapeutics Shares Worth $36.2 Million
Wednesday / 05/20/2026, 08:20 EST
Dimov Tax CEO Reveals Essential Side Hustle Tax Deductions
Wednesday / 05/20/2026, 08:12 EST
Brady Corporation Shares Surge 17% After Raising Full-Year Earnings Guidance
Wednesday / 05/20/2026, 08:04 EST

