U.S. stocks have been trending upwards recently, reaching an all-time high on Tuesday. U.S. stocks previously reached a record high in late January.
The recent upward trend can mainly be attributed to tech and utility companies.
S&P 500 set a new intra-day record of 2,872.93 at 1:00 PM, finishing with 2,873.23 later on the day.
This achievement was only strengthened by the fact that, after Wednesday, the United States will have reached its longest bull market ever.
These two record-breaking achievements come after a drop in U.S. stocks occurred in February. While this event was rare and has not happened for over half a year, it did have major repercussions. The drop brought the Dow Jones industrial average down by a thousand points.
Considering these factors, the upwards trend which U.S. stocks have experienced is remarkable.
Trade conflicts with former U.S. allies and higher interest rates are only two factors which could’ve negatively influenced the stock market and made it more volatile.
Regardless, the progress in earnings from the S&P 500 is undeniable.
During its first financial quarter, its companies reported a 23% increase. This was the S&P’s strongest increase in over half a decade. Although not all of S&P’s companies have reported earnings for the second quarter, it seems as though they will experience similar success.
Analysts across Wall Street have been quite pleased with these reports, and expect the upward trend to continue. If trade war-related controversies haven’t hit the stocks yet, they probably never will.
Kristina Hooper, the chief global market strategist at Invesco, argued:
This bull market has been breathtaking, with stocks having risen over 300% since the start. I agree that valuations in general have become stretched; however, corporate earnings have been strong, and I believe US stocks are likely to continue to outperform in the shorter term given the strength of the US economy and the perceived safety of US stocks in the midst of trade wars.”
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