S&P 500 Hits New Record, Confirms Bull Market
The S&P 500 jumped on Friday to a new record, surpassing the previous record level set in January 2022. This achievement confirms that the market is officially in a bull market, which began in October 2022 when the broad index hit a low of 3,577.03. While the conventional definition of a bull market is any gain greater than 20%, most market observers wait for a new high to be made before calling it official. This helps to rule out any bear market bounces that can sometimes tally more than 20%.
Examining the Historical Gains of Bull Markets
Data from CFRA Research shows that if history is any indication, stocks could be in for even bigger gains ahead. The S&P 500 has surged an average of 156% over the course of the typical bull market since 1947, with the median gain coming in at 101%. On average, bull markets last more than 1,700 days, or longer than four years. The median length of a bull run is just over 1,500 days. In comparison, the current bull run has lasted about 15 months, or under a year and a half, so far.
Bull Market Milestone: S&P 500 Surges to All-Time High
The milestone of the S&P 500 reaching an all-time high comes as investors grow optimistic about the possibility of the Federal Reserve cutting interest rates later this year. This excitement has driven stocks higher in recent months, overcoming some stalling seen at the start of the new trading year. Art Hogan, chief market strategist at B. Riley Wealth Management, commented that “when you’re able to break through, especially after such a long period…it tends to mean you have momentum on your side.“
Investor Optimism Grows as Market Breaks Through
The S&P 500 reaching a new record high sets up a more risk-on attitude for investors. After a rocky start to the year following a strong finish in the previous year, this milestone signifies that there is momentum in the market. Investor optimism is growing, especially with the potential for interest rate cuts by the Federal Reserve. This optimism is reflected in the recent upward trajectory of stock prices.
S&P 500 Breaks Streak, Hits New Record Close
Friday’s all-time high at the close of the trading session also broke a streak of 512 trading days without a record close, according to Bespoke Investment Group. Data from the firm shows that there have only been five longer streaks without a new high at the conclusion of a trading day since 1952. This further emphasizes the significance of the S&P 500 hitting a new record close, solidifying the market’s bullish trend.
Analyst comment
Positive news: The S&P 500 hitting a new record confirms a bull market, signaling potential for further gains. Historical data suggests average gains of 156% in bull markets. Investor optimism grows with the potential for interest rate cuts. The market breaking a long streak without a record close further emphasizes the significance of the milestone. Analyst predicts continued upward trajectory in the market.
