Bull Market Summer: 6 Reasons Wall Street's Rally Continues

Group 1 - Bulls have regained control of Wall Street as the stock market enters a favorable election cycle seasonality period [1] - Historical data shows that the first quarter of the presidential cycle tends to be weak, with the S&P 500 declining by 4.3% in Q1 2025, but July is expected to be the strongest month on average [2] - The Nasdaq 100 Index ETF reached all-time highs, yet investor sentiment remains cautious, with only 35.1% of respondents bullish according to the AAII Sentiment Survey [4] Group 2 - The IPO market has seen a revival in 2025, with successful debuts from companies like CoreWeave and Circle Group, indicating a risk-on appetite on Wall Street [6][7] - Fed Chair Jerome Powell faces criticism for maintaining high-interest rates, but Morgan Stanley forecasts seven rate cuts in 2026, which could positively impact stock prices [8] - Geopolitical tensions have eased with a ceasefire negotiated between Israel and Iran, and trade deals nearing finalization, reducing uncertainty for investors [9] Group 3 - Momentum stocks such as SoundHound AI, BigBear.AI, and Sofi Technologies are gaining investor interest, reflecting a risk-on sentiment in the market [10] - Six powerful tailwinds suggest that bulls are well-positioned to maintain their grip on Wall Street as summer approaches [11]