Berkshire Hathaway Q2 Beats and Market Rally: Nasdaq and Dow Hit New Peaks

Dow Jones and S&P 500 futures open Sunday evening, reigniting the market rally.

Nasdaq’s Surge and the Chip Landscape

■Nasdaq index rose 5.2%, retaking its 50‑day moving average.

■Chip and AI‑hardware stocks posted 7‑8% gains overall; Nvidia (NVDA) remains the outlier, while others continue to recover.

■Potential Iran developments and a new agreement over the Strait of Hormuz pushed crude oil down 7.7%, bolstering risk appetite.

Berkshire Hathaway’s Q2 Results

■Berkshire Hathaway (BRKB) reported Q2 operating earnings of $12.98 billion, a 16% YoY increase.

■Revenue climbed to $101.8 billion, up 10%; cash holdings sit at $365.5 billion (down from $380 billion in Q1).

■The conglomerate repurchased $4.5 billion of its own shares, bringing total net equity purchases to $20 billion, reversing a 14‑quarter sell‑off streak.

Upcoming AI‑Hardware Earnings

■Cisco Systems (CSCO), Lumentum Holdings (LITE), Applied Materials (AMAT) and Coherent (COHR) are slated to report next week.

■All except Nebius (NBIS) are hovering near buy zones on technical screens.

■Investors should prioritize stocks that have broken above their 50‑day averages; legacy leaders remain below that threshold.

ETF Flows and Sector Rotation

■VanEck Vectors Semiconductor ETF (SMH) climbed 7.8%, with Applied Materials (AMAT) as a key holding.

■iShares Expanded Tech‑Software Sector ETF (IGV) surged 8.6%, while ARK Innovation ETF (ARKK) jumped 11.5%.

■SPDR S&P Metals & Mining ETF (XME) posted a 15% gain, underscoring strength in metals and mining; Energy Select SPDR ETF (XLE) fell 3.5%.

Market Outlook and Tactical Guidance

■Falling oil prices and a 10‑year Treasury yield at 4.66% provide short‑term tailwinds.

■Upcoming CPI and PPI releases will shape expectations for a potential September rate hike by the Fed.

■Incremental exposure to stocks trading above their 50‑day moving averages across software, industrials, and aerospace can sustain the rally.

Expert Commentary (Dr. Yaman Ege): While the chip supply bottleneck eases, limited ASML capacity and the China‑U.S. rare‑earth dispute keep AI‑hardware valuations volatile outside Nvidia. Berkshire’s robust cash position acts as a buffer against energy and industrial swings. In the near term, sector rotation and ETF diversification are essential risk mitigants, yet Fed policy and geopolitical developments (Iran, Middle East) will remain the primary market drivers.