Brokers from Fletrade note that US equities have maintained strong upward momentum, defying potential headwinds from newly imposed tariffs and steady inflation figures. The latest Consumer Price Index (CPI) data confirmed that inflation remains unchanged, easing concerns over aggressive monetary tightening. 

This stability has bolstered investor confidence, prompting continued buying across sectors. As of mid-Wednesday, the Nasdaq Composite climbed 0.54%, the Dow Jones Industrial Average advanced 0.61%, and the S&P 500 rose 0.40%. 

Multiple consecutive days of gains signal strengthening market breadth and sentiment, with analysts suggesting this could mark the early stages of a longer-term bullish trend.

Inflation Steady, Markets Strong

The CPI report confirmed that inflation has not moved significantly, suggesting price pressures remain under control. For investors, this stability offers reassurance that the Federal Reserve may not need to tighten policy further in the near term. Brokers highlight that this dynamic is helping to keep sentiment positive despite the introduction of new tariffs on several US trade partners.

“Stable inflation combined with continued resilience in corporate earnings is creating an environment where equities can thrive,” notes a senior equity strategist. “The market is looking beyond headline risks and focusing on fundamentals.”

Resilience Against Tariff Pressures

In previous cycles, tariff announcements have tended to weigh heavily on equities, particularly in sectors exposed to global supply chains. However, the latest measures have so far failed to derail the rally. The Nasdaq and S&P 500 are both trading near record highs, reflecting investor confidence in the broader economy’s ability to absorb these trade headwinds.

Brokers suggest this resilience is rooted in strong corporate balance sheets and an expectation that global demand will remain robust. The ongoing shift toward technology, AI, and advanced manufacturing is also supporting optimism, particularly among growth-oriented investors.

Standout Performers Driving the Rally

While the broader indices have been steadily climbing, a relatively small group of mega-cap stocks is providing the bulk of the upward thrust. These market heavyweights are not only benefiting from favorable sector trends but are also commanding investor attention due to their scale, liquidity, and strong narrative momentum.

Tesla (TSLA)
Tesla has delivered an impressive turnaround after a turbulent first half of 2025 marked by production challenges, pricing pressure, and investor skepticism about slowing EV demand. The shift began in late July, as stronger-than-expected delivery figures calmed fears about waning market share. 

Optimism has been further bolstered by updates on its next-generation battery technology, which promises longer range, faster charging, and lower production costs, a combination that could reinvigorate margins. The rebound has attracted both growth-focused investors and short-covering traders, creating sustained buying pressure throughout August.

Apple (AAPL)
Apple, the world’s second-largest company by market capitalization, has mounted a sharp recovery, climbing more than 13% in August alone. The rally follows a relatively subdued performance earlier in the year, when concerns over slowing hardware sales weighed on sentiment. 

Renewed enthusiasm is being fueled by two key drivers: stronger-than-expected iPhone demand, particularly in emerging markets, and accelerated integration of AI features across its product lineup. 

Reports suggest that Apple’s upcoming iOS updates will feature more on-device AI capabilities, enhancing privacy and performance, a move viewed as a competitive advantage against cloud-dependent AI services. This narrative has positioned Apple as a “quiet beneficiary” of the AI boom, complementing its established brand loyalty and ecosystem strength.

Nvidia (NVDA)
Nvidia remains the poster child of AI-driven market momentum. The stock has been in a steady bullish trend since late April, propelled by relentless demand for its AI chips, which dominate the data center and generative AI training markets. With hyperscalers and enterprises racing to build AI infrastructure, Nvidia’s pricing power and product roadmap have kept it firmly ahead of competitors. 

Analysts describe it as “the closest thing to a momentum anchor in today’s market,” a stock whose performance is so strong that it has become a stabilizing force for bullish sentiment in the tech sector. For many investors, Nvidia is not just a growth story; it’s a conviction trade on the long-term monetization of AI.

Investor Takeaway

With inflation steady and tariff impacts muted, market sentiment remains firmly positive. Brokers from Fletrade believe that this backdrop offers opportunities for both short-term traders and long-term investors. “We are seeing technical strength across multiple sectors, not just technology,” one strategist observes. “That breadth is what makes this rally sustainable.”

For now, the advice is clear: monitor macro developments, but do not ignore the strength in leading equities. If current conditions hold, the rally could extend into the final months of the year, rewarding those who stay positioned for upside.