The S&P 500 has been on a record-breaking streak in the first quarter of 2024, with over a 10 percent increase and 22 new highs. Around 40 percent of the stocks in the index are now trading above their levels from a year ago, showing strong growth across the board.
Despite this remarkable performance, there have been only three days this year where the S&P 500 fell by more than 1 percent at the closing bell. This stability has been reassuring to investors, who have poured roughly $50 billion into US stock funds in March alone, indicating a renewed appetite for stocks.
The market rally that started in January was initially driven by expectations of interest rate cuts by the Federal Reserve. However, this optimism has evolved into a confidence that the central bank can achieve a “soft landing” in reducing inflation to its target of 2 percent without causing significant harm to the economy.
Investors are hopeful that the strong performance of the S&P 500 will continue throughout the year, as economic indicators remain positive and market sentiment remains bullish. With continued support from the Federal Reserve and ongoing economic growth, many analysts are optimistic that the stock market will continue to thrive in the coming months.
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