U.S. Stocks Set to Achieve Historic Winning Streaks Since the Nixon Era
U.S. stocks are poised to achieve a milestone that hasn’t been seen since President Richard Nixon’s term in office. The S&P 500 is on track to record its 14th weekly gain out of 15 on Friday, a feat that hasn’t occurred since March 10, 1972. This marks the 13th time it has happened since the index was established in 1957.
Impressive Magnitude of S&P 500’s Rise Over 15 Weeks
The current winning streak for the S&P 500 is not only notable for its longevity, but also for the magnitude of its rise. Over the past 15 weeks, the index has surged 21.8%, the largest advance in this period since August 28, 2020. The S&P 500 is also expected to close above 5,000 for the first time on Friday, marking its 10th record close of the year.
Nasdaq Composite Joins S&P 500 in Historic Winning Streak
The Nasdaq Composite is also on the verge of achieving a historic winning streak, with 14 out of 15 weeks in the green. This is reminiscent of a 15-week winning streak that concluded on August 8, 1997. This demonstrates the strength and momentum of the tech-heavy index.
Dow Jones Industrial Average Awaits Potential Milestone of Its Own
While the focus may be on the S&P 500 and Nasdaq Composite, the Dow Jones Industrial Average is also looking to make history. If it finishes the week with a gain, it will be the first time since May 12, 1995, that the index has experienced such a winning streak. This would be the 14th occurrence since its inception in the late 19th century.
Key Factors Driving the Market Rally
There are several factors that have contributed to the impressive performance of U.S. stocks in recent weeks. One of the main drivers has been the Federal Reserve’s shift away from raising interest rates to keeping them steady or potentially cutting them later this year. This pivot has provided a boost of confidence to investors. Additionally, the U.S. economy’s unexpected strength has also played a significant role in driving the market rally.
Friday’s Market Performance
U.S. stocks traded mostly higher on Friday, with the S&P 500 and Nasdaq Composite on course for weekly gains. The S&P 500 was up 0.3% midday trading, while the Nasdaq Composite was up 1%, signaling a 2% weekly advance. However, the Dow Jones Industrial Average was slightly down, suggesting a marginal loss for the week. The Russell 2000 was also experiencing a positive week, with a 0.7% gain midday and a projected 1.6% weekly advance.
In conclusion, U.S. stocks are poised to achieve a historic winning streak, with the S&P 500, Nasdaq Composite, and potentially the Dow Jones Industrial Average all experiencing consecutive weeks of gains. The market rally has been supported by the Federal Reserve’s shift in interest rates and the resilience of the U.S. economy. As Friday’s trading session unfolds, investors eagerly await the outcome and potential records being broken.
Analyst comment
Positive news: U.S. stocks set to achieve historic winning streaks since the Nixon era. The S&P 500 and Nasdaq Composite have consistently gained over 14 out of 15 weeks, with the S&P 500 expected to close above 5,000 for the first time. The Dow Jones Industrial Average also awaits a potential milestone. The market rally has been driven by the Federal Reserve’s interest rate shift and the strong U.S. economy. Markets are mostly higher on Friday, signaling continued gains.
