The Nuveen Core Equity Alpha Fund (JCE) is experiencing upward momentum, driven by a confluence of factors impacting the broader equity markets. A significant catalyst is the ongoing rally in U.S. equities, with the S&P 500 showing a remarkable 27% gain over 2024, as reported on December 23. This surge is largely attributed to the anticipation of further rate cuts by the Federal Reserve, which began in September, and the continued optimism surrounding technological advancements, particularly in artificial intelligence. The tech sector, buoyed by AI developments, has seen substantial gains, with companies like NVIDIA and Meta experiencing exponential growth from their 2022 lows. This tech-driven rally is reminiscent of the late 1990s tech boom, fueled by low borrowing costs and investor enthusiasm for new technologies.
Additionally, the political landscape in the United States has contributed to the positive sentiment in the markets. The election of a business-friendly administration with a GOP supermajority has bolstered confidence, particularly in large-cap tech stocks. Tesla, for instance, has benefited from its association with President-elect Trump, given its significant AI exposure. The Federal Reserve's dovish stance, despite inflationary pressures, has further supported the equity rally, with recent rate cuts in September and November enhancing the risk-on environment. This combination of factors has created a favorable backdrop for equity funds like JCE, which are capitalizing on the robust market conditions.
The JCE ETF is currently priced at $15.49, reflecting a 1.71% increase from the previous close.