U.S. stocks have withstood pressure again thanks to Mega corporations

The American stock market suffered several blows this morning, but once again demonstrated its resilience, largely due to the shares of megacorporations: Meta Platforms (META 670,90, +23,41, +3,6%), which, according to The Wall Street Journal, plans to fully switch to AI–generated advertising by 2026 and NVIDIA (NVDA) (137,38, +2,25, +1,7%) which remains the main bet of investors on artificial intelligence.

The Vanguard Mega–Cap Growth (MGK) ETF gained 0.9%, while the Invesco S&P 500 Equal–Weighted ETF (RSP) rose just 0.1%.

The negative news at the beginning of the session was that the United States would double tariffs on steel and aluminum imports to 50% starting on Wednesday, as well as China‘s statements that it was the United States that violated the preliminary trade agreement concluded in Geneva.

This has raised concerns about rising inflation due to both tariff increases and possible disruptions to global supply chains. The S&P 500, taking into account market capitalization, declined 0.9% shortly after the opening, but quickly began to recover after the publication of the ISM manufacturing PMI index for May, which turned out to be better than expected, and CNBC reported on a likely conversation between Trump and Xi Jinping this week.

Later, Reuters, citing a draft letter from the US trade representative, reported that the Trump administration was demanding that countries submit their “best proposals“ on trade terms by Wednesday.

Since the release of the ISM index, the market has been moving up almost steadily, and the S&P 500 and Nasdaq Composite have closed at daily highs. It is noteworthy that the growth occurred against the background of higher yields on US government bonds, which may indicate a redistribution of funds from bonds to stocks.

Activity in closing short positions and the return of investors who were waiting to enter the market also probably played a role. The stability of the stock market increased fears of missing further growth. Growth was shown by 10 of the 11 sectors of the S&P 500.

The energy sector became the leader (+1.2%), which was helped by an increase in oil prices to $62.57 per barrel (+1.81, +3.0%) after OPEC+ decided to increase production in July by only 411 thousand barrels per day, less than traders had feared. The information technology sector (+0.9%) was the second strongest growth, and also supported the overall upward movement along with the communications services sector (+0.6%). The only decline was in the industrial sector (-0.2%). The width of the market indicates a relatively narrow growth pattern: on the NYSE, the number of declining securities exceeded the growing ones by about 5 to 4, while on the Nasdaq there was a slight preponderance of stocks in the black.

Our American FTinvest 11 portfolio remained in negative territory today. In the last hour of the session, an attempt was made to reduce losses, but it was not possible to gain ground. As a result, the index closed the day with a decrease of 0.31% to the level of 742.49.