S&P 500: Long-term losers take off – the future is AI!

S&P 500: Long-term losers take off – the future is AI!

On August 30, 2025, the S&P 500 reached a record high of 6,500 points, supported by a strong rally in artificial intelligence (AI) and positive economic data. Some of the former bottom performers in the index have recorded drastic price gains, reinforcing the upward movement of the last few months. The index is fueled by several factors, including tax reforms and investments in AI, which bring new momentum.

The Federal Reserve has also signaled interest rate cuts in September, further heating up the market. How boerse-express.com reports, companies are increasingly optimistic, as evidenced by the increasing use of terms such as “order books” and “forecast increase” in quarterly reports. The One Big Beautiful Bill Act also allows for the full write-off of research expenses, which expands the financial flexibility of many companies.

Long-term winners and market conditions

Particularly striking are the activities of companies like Walgreens Boots Alliance, which tops the list of long-standing losers. These depreciated stocks could now have explosive recovery potential as market participants turn their attention to potential opportunities. Morgan Stanley highlights that the combination of political stimulus, corporate optimism and accommodative monetary policy is creating a favorable environment.

Analysts see the movement in AI stocks as a structural change and a new cycle of innovation. Nvidia, for example, reported a 56% increase in revenue last quarter, underscoring continued demand for AI infrastructure. Other tech giants such as Alphabet and Amazon also contributed to this rally.

Economic framework conditions

Current economic conditions show robust GDP growth of 3.3% in the second quarter of 2025 " bitrue.com " reports. Additionally, jobless claims remain low, indicating a stable labor market. The latest PCE data shows core inflation at 2.9 percent, which is in line with expectations and could potentially support the Federal Reserve's interest rate cuts.

Despite the euphoric market performance, the S&P 500's price-to-earnings ratio is close to 30, which historically indicates possible market corrections. Market participants are discussing whether innovative sectors such as AI require a reassessment of traditional valuation metrics. The combination of opportunities and risks is expected to have a decisive influence on market developments in the coming months.