Semiconductor sector leads market trend, U.S. stocks rebound strongly in April, S&P 500 index, Nasdaq achieve best single-month performance in nearly six years.

In April, US stocks saw a sharp rise, with major stock indices recording their strongest monthly performance in nearly six years. Improved corporate earnings outlook and the investment frenzy in artificial intelligence have driven market sentiment significantly higher, even though concerns about the Middle East conflict and energy supply risks have not completely faded, investors remain optimistic. Data shows that the S&P 500 index rose by 10.4% in April, its best single-month performance since November 2020; the Nasdaq rose by 15.3%, its largest increase since April 2020; and the Dow rose by 7.1%, also recording strong performance for the period. The speed of the market rebound has also surprised some analysts. Despite concerns such as blocked oil transportation in the Strait of Hormuz, rising oil prices, and gasoline prices exceeding $4 per gallon, consumer spending has not been significantly affected, alleviating market concerns about economic downturn. During this rally, the technology sector has become the absolute main force. Previously underperforming tech stocks rebounded strongly in April, significantly outperforming the energy sector. The SPDR Technology Select Sector ETF surged by about 20% in April, its largest monthly increase since 2002. The semiconductor sector performed exceptionally well, with the Philadelphia Semiconductor Index rising by 38.4%, its best performance since 2000. Analysts pointed out that the market was primarily driven by upward revisions in profit expectations. With corporate earnings performance exceeding expectations and analysts continuously raising full-year earnings forecasts, funds flowed into technology and AI-related sectors. Some previously lagging chip companies such as Intel Corporation and Qualcomm also saw significant rebounds, while the storage chip sector continued its strong upward trend. Despite the major indices continuously hitting new highs, there are signs of differentiation in the market's internal structure. Large technology companies have shown significant differentiation in performance, with Alphabet's stock price rising by about 10%, while Microsoft Corporation, NVIDIA Corporation, and Meta Platforms saw declines, indicating that investors are becoming more cautious in choosing the "winners" in the AI race. Furthermore, the market concentration of the rise is relatively high. According to statistics, since March 30, approximately 75% of the S&P 500's gains have been contributed by just 10 technology stocks, reflecting the market's clear reliance on a few leaders. There are also some concerns on the technical side. Some analysts point out that while the index hits new highs, the breadth of individual stock gains is declining, leading to what is known as a "bearish divergence," suggesting that market internal momentum may be weakening. Despite the strong rebound in the market, investors have not completely turned aggressive. Options market data shows that investors still prefer to allocate volatility call options to hedge potential downside risks. The VIX fear index closed at 17, its lowest level since February, but the option structure shows that the market still maintains a defensive stance.