Bull market remains historically strong despite recent tech stock pain: Chart

Now is simply a bully constituent successful the twelvemonth to not suffer absorption connected the semipermanent prize.

Quick insight: With Wall Street trading desks light, summertime vacations successful afloat swing, and fears of Fed complaint hikes swirling, stocks person travel nether unit — particularly the tech-heavy Nasdaq Composite (^IXIC). 

But a well-timed enactment from the Goldman Sachs squad offers a spot of adjuvant perspective. 

Goldman noted that the S&P 500 (^GSPC) is up 95% since the extremity of 2022, placing the existent bull marketplace successful the strongest 10% astatine this signifier of the cycle, based connected information going backmost to 1928.

By comparison, the apical 25% of humanities bull markets gained astir 50% implicit the aforesaid period, and the median bull marketplace delivered conscionable 35% aft three-and-a-half years. Since the April 2025 low, the S&P 500 has surged 51%.

"Market momentum is incredibly strong," strategists astatine the Kobeissi Letter said.

The existent authorities of play: The banal marketplace has been an implicit dumpster occurrence implicit the past 5 trading sessions, with the symptom coming from aggregate directions simultaneously.

The representation spot sector, which was 2026's azygous hottest trade, has been hammered, with semiconductor stocks losing astir $1.5 trillion successful marketplace worth since June 25 alone. Micron (MU) is down astir $350 cardinal successful marketplace headdress by itself, portion Sandisk (SNDK), Intel (INTC), Applied Materials (AMAT), and Lam Research (LRCX) person each shed much than $100 cardinal — a bloodbath driven by a toxic cocktail of profit-taking aft parabolic gains. 

Read more: How to support your wealth during turmoil, banal marketplace volatility

President Trump's announcement reinstating what helium called a blockade connected Iranian shipping done the Strait of Hormuz has sent lipid prices surging and triggered a wide marketplace sell-off, reminding investors that geopolitical hazard hasn't gone anyplace and that the Fed's quality to chopped rates gets importantly much analyzable erstwhile vigor prices are spiking. 

Then Netflix (NFLX) delivered the gut punch to extremity the week. Shares dropped 8% successful aboriginal trading connected Friday arsenic the streaming elephantine delivered its 2nd consecutive less-than-stellar quarter. Investors were having nary of the BS Netflix executives were spinning connected the net call. 

The bottommost line: The marketplace has taken a fewer deserved hits of precocious — thing goes up and to the close forever. But arsenic Goldman pointed out, marketplace momentum remains beardown and volition instrumentality a batch much disfigured quality to unsettle the bulls.

Brian Sozzi is Yahoo Finance's Executive Editor, big of the Power Players with Brian Sozzi podcast, and a subordinate of Yahoo Finance's editorial enactment team. Follow Sozzi connected X @BrianSozzi, Instagram, and LinkedIn. Tips connected stories? Email [email protected].

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