US Stocks Are Back at Records — Can the Rally Keep Running?

Wall Street has bounced back fast. The S&P 500 broke above 7,700, the Dow pushed through 54,000, while the Nasdaq extended its winning streak as investors returned to technology and AI names.

What changed? A lot of the excess positioning built up before the July selloff has been cleared out. Lower leverage, improved liquidity and stronger earnings have given investors more confidence to buy the dip.

AI is still doing much of the heavy lifting. The Magnificent Seven gained nearly 10% over four sessions, showing that traders are once again willing to pay up for growth.

But this rally has already moved quickly. With the major indices back near record highs, the market has less room for disappointing earnings or a renewed jump in yields.

For US500, the 7,700 area has now become an important reference point. Holding above it would keep the recovery constructive, while a break back below could signal that traders are starting to take profits.

For NAS100, the setup is even more sensitive to AI expectations. Strong earnings could push the index toward fresh highs, but any sign that AI spending is producing weaker returns could trigger a sharper pullback.

Right now, the bulls have the momentum. The question is no longer whether the July selloff is over, but whether earnings can keep the new highs justified.