5 Stocks to Buy on S&P 500's 16th Record Closing High of the Year

Market Overview - The S&P 500 and Nasdaq reached new record highs, with the S&P 500 closing at 6,445.76 points, marking its 16th record close of the year [4][11] - The recent rally was fueled by lower-than-expected inflation data, which raised hopes for a potential rate cut in September [5][7] Economic Indicators - The Consumer Price Index (CPI) rose 0.2% in July, lower than the expected 0.3% increase, and year-over-year CPI rose 2.7%, also below the consensus estimate of 2.8% [5] - Core CPI, excluding food and energy, increased by 0.3% in July, aligning with expectations, while year-over-year core CPI rose 3.1%, slightly above the anticipated 3% [6] Investor Sentiment - There is a growing optimism among investors regarding rate cuts, with a 94% chance of a 25-basis point cut in September, up from 85% prior to the CPI report [7][11] - The S&P 500 has rebounded significantly after nearing bear market territory in April, gaining 2.8% in the past month and 9.6% year-to-date [9] Investment Opportunities - Recommended S&P 500 stocks with strong growth potential for 2025 include: - Adobe Inc. (ADBE): Expected earnings growth rate of 12% for the current year, Zacks Rank 2 [12] - Microsoft Corporation (MSFT): Expected earnings growth rate of 12.3%, Zacks Rank 2 [14] - Broadcom Inc. (AVGO): Expected earnings growth rate of 36.1%, Zacks Rank 2 [16] - Analog Devices, Inc. (ADI): Expected earnings growth rate of 16%, Zacks Rank 2 [18] - Arista Networks, Inc. (ANET): Expected earnings growth rate of 23.8%, Zacks Rank 1 [20]