S&P 500 Remains High, But Is It Sustainable?

Gary Thomson, Chief Operating Officer FXOpen UK

The recent performance of the S&P 500 index has been nothing short of remarkable, showcasing consistent growth over the past several months. From its low point in October, the index has surged to impressive heights, reaching record levels most recently.

Back on October 27 of the previous year, the S&P 500 was at a rather subdued 4,117.9 points, marking a dip in its value as the seasons transitioned from summer to autumn. However, since then, a significant rally has ensued, propelling the index to 5,027.8 points by the close of yesterday’s US trading session.

This surge is particularly noteworthy, with last week’s market euphoria pushing the S&P 500 past the 5,000-point milestone, setting a new record for this prestigious index. Over a longer timeframe, the index has demonstrated substantial growth, with reports indicating a remarkable 24% increase throughout 2023, despite a slight dip in the early months of the year.

What’s intriguing about this buoyancy is that it seems to lack a singular catalyst. Instead, it appears to be fueled by steady earnings reports from constituent companies and positive sentiments from Federal Reserve policymakers regarding the overall health of the US economy. Despite the anticipation of interest rate cuts not materialising, investors continue to hold an optimistic outlook for US-listed companies.

As we observe the S&P 500’s value in today’s US trading session, there’s a slight dip from yesterday’s highs, with the index hovering around 5,006 points, according to FXOpen charts. While this may signal a minor correction or adjustment, it’s important to note the absence of any negative indicators on the horizon.

In such a scenario, it’s possible that this could be a natural recalibration after a period of rapid growth or perhaps just a temporary fluctuation before the upward trend resumes. Ultimately, the trajectory of the S&P 500 will be determined by ongoing market dynamics and economic factors, and only time will reveal the true outcome amidst the backdrop of a fundamentally sound US economy.

FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Disclaimer: The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

 

  • Read this next

    Fundamental Analysis

    Global FX Market Summary: EUR, Fed Minutes February 21, 2024

    Hawkish Fed minutes could strengthen USD, dovish BoE hints could boost euro, mixed economic data leaves impact unclear, FOMC minutes release today holds the most weight.

    Digital Assets

    360T launches Crypto NDF offering

    “By launching our crypto offering with non-deliverable derivatives products, we are allowing our diverse, global client base to engage with the crypto market without the need to build or invest in Distributed Ledger Technology (DLT) infrastructure. Looking ahead, we will continue to work with our industry partners to expand 360T’s crypto.”

    Technical Analysis

    FTSE 100 index Technical Analysis Report 20 February, 2024

    The FTSE 100 index is likely to fall to support level 7600.00 after reversing from resistance level 7750.00.

    Retail FX

    Afterprime enhances trade reporting with PrimeXM and TRAction

    “This collaboration has made setting up EMIR and MIFIR reporting for our CySEC entity a breeze, allowing us to maintain our focus on providing best-in-class pricing and top-notch customer service.”

    Market News

    US Market Stocks See a Dip Ahead of FOMC Minutes Announcement

    As the financial world eagerly awaits the release of the Federal Open Market Committee (FOMC) meeting minutes scheduled for today, the S&P 500 index begins trading slightly lower, marking a subtle shift in market sentiment following a prolonged rally.

    Fintech

    Adaptive proves that “the future of finance is in the cloud”

    “While workloads have migrated to the cloud over the past decade, some have doubted whether its latency and fault tolerance can match that of on-premises solutions – our joint testing on Google Cloud, proves that this is the case.”

    Retail FX

    Axi Select offers live trading amid “end of demo account prop firm model”

    “We genuinely empathize with the thousands of talented traders who will now be denied access to their allocated funds, and we encourage anyone using the demo trading registration model to question whether their prop firm partner will be able to continue as an ongoing concern given recent events. Unfortunately, this could be the beginning of the end for the demo account prop firm model.”

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    <