The equity market has had its most promising beginning to a year since 1997.
The S&P 500 has climbed 20.8% over the initial nine months of 2024, marking the most favorable year start since 1997 and the greatest opening of a presidential election year on record. $SPX https://t.co/rQuXrxVpWs pic.twitter.com/3og2cQHPic
— Charlie Bilello (@charliebilello) October 1, 2024
The S&P 500 has achieved 43 record peaks this year, with the index up 20.8% overall. This impressive outcome has been fueled by optimism regarding the US economy and excitement over possible interest rate reductions from the Federal Reserve.
Today, the S&P 500 reached an all-time high for the 43rd time this year. $SPX https://t.co/rQuXrxVpWs pic.twitter.com/9uHxfGkZJ9
— Charlie Bilello (@charliebilello) October 1, 2024
“The exceptional market performance reflects the sustained strength of the US economy,” noted Kristina Hooper, chief global market strategist at Invesco. Despite ongoing worries about consumer expenditures resulting from elevated living and borrowing expenses, consumer spending has remained solid. Given that consumer spending is the primary engine of the US economy, its stability is crucial for the current market dynamics.
“.. Over 60% of S&P 500 constituents have outperformed the index so far this quarter, compared to around 25% in the first half of the year.” @reuters $SPX 🇺🇸 https://t.co/BAMbUpXwWZ pic.twitter.com/98QlUnqppc
— Carl Quintanilla (@carlquintanilla) September 30, 2024
The Federal Reserve has reiterated its dedication to safeguarding the job market, a stance reinforced by recent interest rate cuts aimed at averting rising unemployment. This perspective has bolstered the market’s hopeful outlook, despite occasional downturns.
Strongest beginning since 1997
Technology shares like Nvidia experienced significant swings as investors navigated various geopolitical issues. Nevertheless, the general sentiment on Wall Street has considerably brightened compared to two months ago when a disappointing jobs report raised recession fears and triggered a sharp market drop.
However, markets swiftly bounced back from that growth concern, swiftly reaching new heights again. The Fear & Greed Index, a gauge of market sentiment, ventured into the “extreme greed” zone on Monday, signaling a notable shift from the “extreme fear” seen in August. Michael Block noted that a key factor is the fear of missing out (FOMO) on the upswing.
“There is this fear of missing a rally. And that is driving a lot of activity,” he stated. In conclusion, despite contending with several hurdles, including geopolitical strains and economic uncertainties, the US stock market has demonstrated extraordinary resilience and growth, leading to its best performance since 1997.
