What Could Keep the Rally Going Even as Energy Rises?

Despite rising energy prices and ongoing geopolitical tensions, Wall Street is defying expectations with a record-breaking rally fueled by mega-cap tech stocks and resilient economic data. Senior Markets Correspondent Kevin Green argues that the market’s technical structure—marked by higher highs, higher lows, and bullish MACD crossovers on both the S&P 500 and MAG7 ETF—suggests continued upside momentum. The key catalyst for this rally? The absence of Fed rate hikes. With inflation prints expected to hold steady and yields near a critical support level, equities can sustain gains even as energy prices climb. Green highlights that the next major resistance for the S&P 500 is around 7,700, while the MAG7 ETF could surge another $20 to reach $90, driven by catch-up trades in Microsoft, Tesla, and Meta. The real risk isn’t inflation or oil—it’s a sudden shift in Fed policy. As long as rates stay on hold, the rally can keep going. The episode underscores a rare alignment: strong corporate earnings, stable consumer demand, and technical strength all converging to support equities. While CPI and PPI data next week could trigger volatility, Green sees a higher probability of in-line or slightly cooler prints, which would further fuel the rally. Meanwhile, earnings surprises are expected to be modest, with Cisco drawing attention as the top headline name.