Investment firm Goldman Sachs Group Inc said in a statement that money allocations to passive equities will pour into the market in July following a sustained rally throughout the early summer.
Scott Rubner, Director of Goldman's Global Markets Division said the third quarter of 2024 is where the 'wall of money' will rapidly flow into the US stock market.
Commenting further, share prices will benefit from a strong seasonal trend and increase through engagement from retail investors. Signs of a comeback in retailers became clearer in July.
Since 1928, the first 15 days of July have been the best two-week trading period of the year for the equity market and it will fade after July 17.
The S&P 500 index was positive for nine consecutive months in July with an average return of 3.7%. The Nasdaq 100 index, on the other hand, recorded more gains in July for 16 consecutive months with a return of 4.6%.
This year, Rubner targets nine new capital basis points to be set every July and make it $26 billion based on $29 trillion of passive assets available for investment.
The S&P 500 moved back above 5,300 on Wednesday, rising for a fourth straight session and nearing new daily highs as the world's biggest technology company Nvidia drove shares higher.
Recently, Nvidia Corp. set a new record and now has the second largest weighting in the S&P 500 at 6.6% over Apple Inc. at 6.4% and followed by Microsoft Corp. at 7%.
