Nike Stock Soars 20% While QuantumScape Jumps 30% Are FOMO and TACO Driving the SandP 500 to New Highs?

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•  27 Jun 2025
 

Nike stock soars 20%, QuantumScape jumps 30%, and Xiaomi climbs 3.5% as investors cheer strong earnings, new electric vehicle launches, and a partial US-China trade deal. These stock market rallies come amid growing FOMO (Fear of Missing Out) and “TACO” (Trump Always Chickens Out) optimism, pushing the S&P 500 and Nasdaq to all-time highs despite inflation concerns.

Investors gained confidence after Nike delivered encouraging earnings, signaling potential continued growth despite macro headwinds. Meanwhile, QuantumScape stock surged 30%, catching the eyes of growth investors betting on the EV battery sector's future.

Xiaomi stock also moved up 3.5% following the launch of its new electric vehicle, aligning with the momentum in the EV market.

Adding to the bullish sentiment, the partial trade deal between the US and China eased fears of a prolonged trade war, reducing investor anxiety over tariffs. While there is still uncertainty around future policies, including potential actions by Trump or the Fed’s interest rate decisions, for now, the market sentiment remains risk-on.

FOMO and TACO The hidden fuel behind market highs? The phrase “TACO” reflects how investors perceive Trump’s past tariff threats as temporary, combining with FOMO to keep money flowing into stocks even as the S&P 500 trades at a forward P/E of 22, well above its historical average of 17.

According to JPMorgan new prediction model, there is a 96% chance of S&P 500 gains in the next six months, driven by momentum and positioning factors. The model has also shown a high success rate in identifying market declines, giving investors a data-driven edge during volatile periods.