It’s not just mega cap tech that’s leading the markets higher this year. Look around and you’ll notice that a variety of big name stocks are starting to join the 52 week club. In some cases, they reach record highs.
Walmart (WMT) closed at a record high of $158.20 on Monday. During the same session, Chipotle Mexican Grill (CMG) hit an intraday high after its all-time high close of $2,139 last Friday. Fast food chain McDonalds (MCD) also recorded its best ever closing price last week at $298.41.
Until now, analysts had noted that this year’s massive market rally had been fueled by a handful of tech stocks. Apple recently became the first publicly traded US company to close with a valuation of $3 trillion.
Other notable names that have recently hit 52-week highs include GE (GE) and home improvement retailer Lowes (LOW).
“Generally, to me, it’s just more and more evidence of expanding scope,” JC Parets, president and founder of Allstarcharts.com said in a note to investors recently.
“That’s the kind of thing that happens in bull markets,” he added.
Yet other strategists caution against taking too optimistic a stance, too soon.
“Beneath the surface, the picture has widened slightly over the past few weeks. However, it is still unusual that we are about 9 months away from the October lows and the rally is not broader,” they said. Chris Varrone, managing director of Strategas, and Ross Mayfield, investment strategy analyst at Baird Private Wealth Management, wrote in a note to investors recently.
“Today we’re sitting around 60-65% of stocks above their 200-day moving average, and historically you might see 80-90% of the issues above the 200-day in this first year,” the strategists added. .
“There are hints of cyclical leadership, but it’s not as broad as one might expect,” they added.
Overall, the Nasdaq (^NDX) gained 39% in the first six months of the year, marking its best first half ever. The broader S&P 500 (^GSPC) had its best first half since 2019, up 16%.
Investors have flocked to information technology, communication services and consumer discretionary stocks this year amid a frenzy around artificial intelligence and the rotation of energy and financials.
However, even names like JPMorgan (JPM) – which earlier this year acquired First Republic Bank in a bid to curb a regional banking crisis – hit a 52-week high on Monday.
Credit card companies Mastercard (MA) and Visa (V) have also reached similar levels recently.
“I was promised a banking crisis, maybe even a recession. But all I got was the most new 52-week highs in years,” Parets said.
Travel stocks were also on a tear. Marriott International (MAR), Delta (DAL), Carnival (CCL) and Norwegian Cruise Line (NCLH) all hit intraday 52 weeks recently.
One sector of the economy that is doing well despite the Fed’s tight monetary policy is travel and leisure.
Carnival shares jumped to a 52-week intraday high of $19.19 on Monday. The cruise line recently announced record quarterly bookings.
“We’re back,” Carnival CEO Josh Weinstein told Yahoo Finance earlier this year.
Ines is a senior economics reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
Click here for the latest stock market news and in-depth analysis, including events moving stocks
Read the latest financial and business news from Yahoo Finance