The S&P 500 achieved an all-time closing high on Friday, surging over 1 percent for the day and surpassing the previous record set in January 2022. Analysts attribute the stock market’s upward trajectory to signs of a stable economy and the positive performance of artificial-intelligence-driven firms on Wall Street. 2023 witnessed the ‘Magnificent Seven’ tech companies, including Apple, Amazon, and Microsoft, increasing by an average of 75%, constituting 30% of the S&P 500’s market value.
The stock market’s outstanding performance is a positive sign for Americans with investments in the index via retirement accounts or benchmark comparison funds. Meanwhile, as the 2024 election approaches, voters’ sentiments about the stock market and economy could influence the stance of President Biden and presumptive challenger Donald Trump on their economic records. Investors eagerly await the Federal Reserve’s approach to interest rates, increasing speculation about potential rate cuts in March.
The S&P 500’s journey to Friday’s record-high close has not been without its challenges, with leading stock indexes reportedly plateauing in the final weeks of 2023. However, the decrease in inflation and increase in consumer sentiment, coupled with strong economic data, have resulted in an overall positive outlook for the market’s future.