U.S. Stocks Achieve Milestone Not Seen Since 1972
In a remarkable feat that hasn’t been seen since the days of President Richard Nixon, U.S. stocks have achieved a milestone that speaks volumes about the current state of the market. The S&P 500, a leading indicator of the U.S. stock market, has risen for the 14th week out of 15, marking a stretch of weekly gains not seen since March 10, 1972. This is only the 13th time in the index’s history, which dates back to 1957, that such a streak has occurred.
What makes this milestone even more impressive is the magnitude of the index’s rise over this period. According to Dow Jones data, the S&P 500 has soared 22.1% over the past 15 weeks, making it the largest 15-week advance since August 2020. This surge in the market has propelled the index to close above 5,000 for the first time in its history, reaching its 10th record close of the year.
But it’s not just the S&P 500 that has been on an unprecedented winning streak. The Nasdaq Composite, a tech-heavy index, has also climbed for the 14th week out of 15, a feat not seen since August 1997. On the other hand, the Dow Jones Industrial Average barely managed to eke out a gain for the week on Friday, marking the first time this has happened since May 1995.
These winning streaks are rare occurrences that showcase the strength and resilience of the U.S. stock market. Since its creation in the late 19th century, the Dow Jones Industrial Average has only experienced 14 winning streaks like this, while the Nasdaq Composite has achieved this milestone only six times since its inception.
So, what has been driving this powerful rally in U.S. stocks? According to Chris Zaccarelli, chief investment officer at Independent Advisors Alliance, the main catalyst has been the Federal Reserve’s shift in monetary policy. The Fed has moved away from raising interest rates and is now holding them steady or even considering cutting them later this year. This pivot by the central bank has provided a boost of confidence to investors and has been a significant driver of the market rally.
Additionally, the surprising strength of the U.S. economy has also played a role in the stock market’s success. Despite concerns of a potential recession, the U.S. economy has remained robust, with no signs of a downturn in sight. This stability has further bolstered investor sentiment and contributed to the rally over the past 14 months.
In terms of recent market performance, U.S. stocks finished mostly higher on Friday, with the exception of the Dow. The S&P 500 closed 0.6% higher, bringing its weekly advance to 1.4%. The Nasdaq Composite closed 1.3% higher, achieving a 2.3% gain for the week. The Dow Jones Industrial Average finished slightly down but still managed a weekly gain of less than 0.1%. Even the Russell 2000, which has faced challenges in the new year, ended the week in the green with a 1.5% gain.
Overall, these milestones in the U.S. stock market highlight the resilience and strength of the economy, as well as the positive sentiment among investors. With the Federal Reserve’s supportive stance and a robust economy, it seems that the rally in U.S. stocks may continue for the foreseeable future. Investors will be closely watching to see if this winning streak can be sustained and if new records will continue to be set in the months ahead.
