The US S&P 500 index has been in a phase without significant declines for more than a year. It is reported CNBC: At 377 days, the market is experiencing its longest sustained run without a selloff of more than two percent since the 2007 financial crisis.
It S&P-500 is a stock index that includes the securities of the 500 largest listed companies in the United States. Over the past six months, the S&P 500 has gained 15.2 percent. While it was trading at 4,742 points on January 2, it closed at 5,464 points on Friday, June 21. By comparison, Germany’s leading Dax index is up around 8.4 percent year-to-date, half the S&P 500’s.
Investor money is pouring in from Microsoft, Apple, Nvidia
According to the report, the unusual market stability of the S&P 500 is accompanied by huge investments in technology companies with large market capitalization. These corporations include: Microsoft, Apple: and: Nvidia: the three most valuable companies in the world. Each of them has a market capitalization of more than three trillion dollars (about 2.8 trillion euros).
Stockholders are betting on the AI ​​boom
Investors speculated that the expansion of artificial intelligence (AI) would further boost the profits of these companies.
CNBC points to a second factor keeping stock markets on track. Prospects of a possible rate cut by the US Federal Reserve (Fed) in 2024 further strengthen the index. Investors are hoping for a similar move from the Fed as new data shows inflation is nearing the central bank’s two percent target.
The S&P 500 includes all the heavyweights of the US economy
The S&P 500 includes everything from Alphabet to Amazon and Apple: up to Visa and Under Armour, anything with authority in the US economy. The companies included in the index cover 75 percent of the total market capitalization of all US stocks.
The S&P 500 was launched in 1957. Out loud Investopeia: The S&P 500 managed to gain an average of 10.26 percent annually from its inception through the end of 2023. The worst year was 2008. The S&P 500 has lost 36.5 percent in the year since the financial crisis hit.
