Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Investing

S&P 500 hits 6,000 for the first time on Trump euphoria

By Lisa Pauline Mattackal and Ankika Biswas

(Reuters) -The S&P 500 briefly touched the psychologically significant 6,000 mark for the first time on Friday, building on a sharp rally after Donald Trump won a second term as U.S. president.

All three major indexes surged to record highs on Nov. 6 following the election results as analysts expect corporations to benefit from Trump’s plans to cut taxes and reduce regulations.

The S&P 500 was last up 0.43% at 5,998.90.

“The market is reacting to a lower interest-rate environment and the fact that we’re through earning season and that we had a presidential election that wasn’t contested and it went better than I think most people expected,” said Robert Pavlik, senior portfolio manager at Dakota Wealth

“In reality, (the 6,000 level) doesn’t mean all that much, it just is confirmation of a good environment and it gives investors a reason to be positive.”

The benchmark index has rallied more than 25% this year, steadily gaining since the end of the previous bear market in October 2022.

The sharp gains in 2024 were largely powered by a steep rise in rate-sensitive megacap growth stocks on hopes of lower borrowing costs and optimism around a soft landing for the U.S. economy.

The Federal Reserve cut rates for the first time in four years in September, followed by a 25 basis point cut in November. Traders are pricing in one more reduction this year, as per CME FedWatch.

Information technology stocks fueled the rise on the S&P 500, led by companies such as AI leader Nvidia (NASDAQ:NVDA).

The index took just about nine months to add 1,000 points after hitting the 5,000 mark in early February. In contrast, it took nearly three years for the S&P 500 to climb from 4,000 in April 2021 to 5,000.

The equity rally, however, has stretched valuations, with the S&P 500 trading at 22.3 times forward earnings, the highest in two years, compared with a long-term average of 16.

Most big brokerages expect the benchmark index to end the year below the 6,000 mark, though Evercore ISI sees it closing at that level.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com