Risk-On Rally Grips Wall Street as Speculative Trades Outperform

Nine trading days into August, high-risk trades are outperforming the broader market by a wide margin. Cathie Wood’s ARK Innovation ETF has jumped 16%, while IPO stocks, chip makers, and software companies have each climbed 9% or more, marking one of the strongest early-month rallies since 2015.

Big Dollar Gains Across Tech

Nvidia has added roughly $600 billion in market value this month alone, while SpaceX has gained close to $440 billion. Microsoft rose nearly $240 billion, and Micron, Broadcom, and Palantir each added more than $130 billion.

Broad Participation Signals Strength

Seven in ten S&P 500 and Nasdaq-100 stocks are higher this month, with chip and software stocks showing even wider gains, a sharp shift from July’s rotation.

Similar rallies in May 2025 continued higher, while a comparable surge in January 2021 fizzled, with speculative leaders falling sharply afterward.