According to a CNBC survey, investors are divided on the direction of the stock market, despite believing that President Trump is beneficial for stocks.

• President Joe Biden may not be as beneficial to the stock market as former President Donald Trump, according to investors' beliefs.
• A majority don't think Nvidia is a great investment at these levels.
• They still like other big cap tech stocks more than anything else.

According to CNBC's Delivering Alpha Stock Survey, the former President Donald Trump is the top pick for the stock market.

According to a poll of 400 investors, traders, and money managers, 67% believe that President Donald Trump would be better for the stock market than President Joe Biden. During Trump's four years in office, the stock market rose 68%, while under Biden's administration, it has gained 44% so far. Additionally, the stock market jumped 137% during Trump's administration, compared to a 34% gain for Biden three and a half years into his four-year term.

The Federal Reserve's performance and the debate over inflation will be major issues during the upcoming election season.

According to the survey, 77% of respondents trusted the central bank to act in the best interest of the American economy, while 23% did not trust the Fed. Additionally, two-thirds of respondents believed the Fed would cut interest rates before the end of the year, with 23% disagreeing and stating there would be no cut in 2024. Lastly, 10% of respondents urged the Fed to cut at the next meeting on July 30-31.

The 400 money managers who participated in the survey were evenly divided on their stance regarding the direction of the S&P 500 and Nasdaq. One-third predicted a 5% or more drop by autumn, while another third expected the markets to rise by 5% or more by then. The remaining third believed the markets would remain range-bound. Both indexes have reached record highs, with the S&P 500 up over 15% since the beginning of the year and the Nasdaq up nearly 20%.

Nearly eight out of ten individuals expressed unease about the increasing reliance on technology in the major stock market indices.

The stock's 12% decline from its 52-week high was recorded in the last week, despite its 150% increase in value in 2024.

According to CNBC's survey, 70% of respondents own the stock, with 39% planning to hold onto it without purchasing more at present. On the other hand, 19% are considering selling it because they have already made a substantial profit, while 13% are buying more after the recent decline. Lastly, 29% of respondents do not have the stock in their portfolios and are seeking other investment opportunities beyond the chipmaker.

Nvidia is not viewed as the top spot to capitalize on the growth of artificial intelligence. Instead, it is seen as the largest potential winner, with 50% of respondents believing it will maximize its return on investment better than any other AI player. In second place were both NVIDIA and AMD, each receiving 13% of the votes, followed by Intel at 11%, Qualcomm at 7%, and AMD at 3%.

According to our survey, big cap tech is currently the most popular investment destination, with 45% of investors choosing to invest in this sector. Energy stocks came in second place with 20%, followed by health care at 16%, and the S&P 500 at 13%. Industrials received 6% of the responses.

The majority of investors prefer India as the best overseas market for investment opportunities, with 39% of respondents choosing it. Japan came in second with 26%, while Europe, Latin America, and China received 23%, 6%, and 6% respectively.

If stocks were not an option, 35% of respondents would choose corporate bonds as their investment. Nineteen percent would keep their money in cash, 16% in U.S. bonds, 13% in gold, 10% in private real estate investment, and 6% in CDs. None of the respondents selected bitcoin as their investment choice.

Over the past ten years, the S&P 500 has grown at an average annual rate of 13%. According to a survey, 22% of respondents predict that the S&P 500 will increase by more than 10% in the next decade. Seventy-eight percent of participants expect the S&P 500 to average between 5% and 10% annually. These figures align with what investors said in the previous quarter.