US stock market is once again making headlines, with the S&P 500 Index not only erasing all its losses from earlier in 2025 but also approaching new record highs.
The US stock market is once again making headlines, with the S&P 500 Index not only erasing all its losses from earlier in 2025 but also approaching new record highs.
For Zimbabwean and African investors watching from afar, this turnaround is both impressive and instructive.
After a volatile start to the year—marked by trade tensions, geopolitical shocks, and economic uncertainty—the S&P 500 has staged a powerful rebound.
What’s behind this rally, which sectors are leading, and what lessons can investors in Zimbabwe and across Africa draw from these developments?
Before we dive in, please note: this article is for educational purposes only.
I am sharing what I am doing with my own money and observations from the market.
This is not investment advice. Always do your own research and consider your personal circumstances before investing or trading.
The S&P 500’s journey in 2025 has been nothing short of dramatic. After reaching a peak in February, the index plunged nearly 19% by April due to escalating tariff disputes and fears of a global slowdown.
At its lowest, the S&P 500 had lost nearly $10 trillion in market value since its February high according to a CNN report. Many investors feared a prolonged bear market.
But the market’s mood began to shift in late April and early May. Several factors contributed to the recovery:
Easing trade tensions: The US government softened some tariffs and made progress in trade negotiations, especially with China and other key partners.
Middle East ceasefire: The de-escalation of conflict between Iran and Israel calmed global nerves, reduced oil prices, and restored risk appetite among investors.
Improved economic data: Revised economic indicators showed the US economy was not contracting as much as feared, and earnings reports from major companies were better than expected.
Federal Reserve stability: The Fed kept interest rates steady, providing a sense of stability and predictability for markets.
These developments triggered a wave of buying, with the S&P 500 rebounding by over 22% from its April lows.
By the end of June, the index had recovered all its losses for the year and was closing in on new all-time highs.
As I am writing this article on July 2, SPX is up 5.95% as shown on the below webste.
Unlike the tech-driven rallies of 2023 and 2024, this year’s market comeback is more broadly based. In fact, seven out of eleven S&P 500 sectors have outperformed the index so far in 2025.
Here’s a look at the sectors leading the charge:
- Utilities and essential services
Utilities have emerged as defensive winners, delivering strong returns as investors seek stability amid uncertainty.
Companies like NextEra Energy and Dominion Energy have benefited from steady demand and investments in infrastructure, especially with the growth of AI-powered data centers.
- Tobacco and consumer staples
The tobacco sector has delivered a remarkable 24% return, led by companies such as Philip Morris International and Altria Group. These firms have adapted to changing consumer preferences and regulatory environments by focusing on smoke-free and innovative products.
- Legal cannabis
Legal cannabis stocks have surged over 21%, buoyed by accelerating legalisation and expanding markets in North America according to a report by Ainvest.
- Industrials
Industrials have posted over 9% gains, reflecting renewed optimism in manufacturing, logistics, and infrastructure spending. This sector’s strength is a sign that the broader economy is recovering, not just the technology giants.
- Broader participation
While the “Magnificent Seven” tech stocks (Apple, Microsoft, Alphabet, Meta, Tesla, Nvidia, Amazon) remain important, they have underperformed the rest of the S&P 500 this year according Yahoo finance report. This broadening of market leadership is a healthy sign, indicating that more companies are participating in the rally and that the economic recovery is not limited to a handful of tech giants.
Why this matters for Zimbabwean and African investors
The US stock market is a bellwether for global finance. When the S&P 500 rallies, it often signals improving economic conditions and risk appetite worldwide.
For Zimbabwean and African investors, there are several important takeaways:
This year’s rally shows the value of diversification. Sectors like utilities, consumer staples, and industrials have outperformed tech, which dominated in previous years. Spreading your investments across different sectors and industries can help reduce risk and capture opportunities as market leadership changes.
- Don’t chase the hottest stocks
The underperformance of the “Magnificent Seven” is a reminder that yesterday’s winners may not always lead tomorrow. Instead of chasing the hottest names, focus on companies with strong fundamentals and reasonable valuations.
- Stay invested during volatility
Many investors who sold during the April downturn have missed out on the powerful rebound. History shows that staying invested—even during tough times—can lead to better long-term results. Trying to time the market is difficult, even for professionals.
- Watch for macro trends
Global events like trade negotiations, geopolitical tensions, and central bank policies can have a huge impact on markets. Stay informed and be ready to adapt your strategy as conditions change.
My approach: What I’m doing in this market
As someone who invests and trades in the US markets from abroad, I follow a disciplined approach that has helped me navigate both bull and bear markets. Here’s what I’m doing right now:
- Buying undervalued, fundamentally strong businesses
I continue to look for publicly listed companies that are trading below their intrinsic value.
When the market dropped in April, I bought several quality stocks at bargain prices.
Some of these have already delivered strong gains, and I’ve taken profits where appropriate.
- Swing trading and taking profits
I also swing trade—holding positions for days or weeks to capture short- to medium-term moves. My rule is simple: when I see a profit, I take it. I don’t try to predict the top or bottom. This approach has helped me avoid big losses and keep my portfolio growing steadily.
- Using options for income
One of my favorite strategies is selling cash-secured puts (CSPs) on stocks I want to own. This allows me to generate income while potentially buying quality companies at lower prices. So far this year, I’ve made significant profits using CSPs.
- Tracking my performance
I’m sharing my journey to beat the S&P 500 this year on my YouTube channel, Streetwise Economics. So far, I’ve generated over 53% year-to-date returns, compared to the S&P 500’s roughly 4% gain. I break down my trades, thought process, and lessons learned—so be sure to subscribe for more insights and real-time updates.
What should Zimbabwean investors do?
Here are some practical steps and reminders for Zimbabwean and African investors looking to benefit from the US market rally:
- Choose a reputable broker
Find an international brokerage that gives you access to US stocks and ETFs. Many platforms now cater to African investors with user-friendly apps and competitive fees.
- Understand currency risks
Investing in US markets means your returns are affected by exchange rate movements. Factor this into your risk management and profit expectations.
- Start small and learn
Begin with small positions as you learn the ropes. Use demo accounts or paper trading to practice strategies before committing real capital.
- Diversify your portfolio
Don’t put all your eggs in one basket. Spread your investments across sectors and asset classes.
- Stay informed and disciplined
Follow reliable sources for market news and analysis. Stick to your process and avoid emotional decisions.
Common mistakes to avoid
As highlighted in recent articles for Zimbabwean investors, here are pitfalls to watch out for:
Overtrading: Avoid excessive buying and selling, which racks up fees and taxes.
Investing in unfamiliar stocks: Only buy what you understand. Do your homework.
Neglecting diversification: Don’t bet everything on one sector or stock.
Trying to time the market: Focus on long-term growth, not short-term swings.
If you want more personalised guidance, you can book a 1:1 consultation with me at www.streetwiseeconomics.com.
Final thoughts: Stay streetwise, stay invested
The S&P 500’s recovery is a testament to the resilience of the US market and the importance of staying disciplined.
While no one can predict the future, history shows that markets reward patience, diversification, and a focus on fundamentals.
As a Zimbabwean or African investor, you have a unique opportunity to tap into global growth by participating in the US markets. Just remember: this is not investment advice, but a reflection of what I am doing and observing.
Investing and trading come with risks, so always do your own research and invest wisely.
*For more updates, trade breakdowns, and practical finance tips, subscribe to my YouTube channel, Streetwise Economics, and consider booking a 1:1 session for tailored support.
Stay streetwise, stay informed, and may your investments prosper—wherever you are in the world.