The stock markets in New York closed on Friday with the S&P 500 rising 22.1 percent over the past 15 weeks, marking a historic increase. This index describes the price development of the 500 most important companies in the United States. According to Dow Jones market data, the S&P 500 index has risen in 14 out of the last 15 weeks, with the last time it saw a similar winning streak being in 1972 during Richard Nixon’s presidency.
The S&P 500 index is now up 22.1 percent over 15 weeks, which is the largest consecutive gain for the index since August 28, 2020. The index crossed 5,000 for the first time on Friday, and other US stock market indices have also been rising at a historically high pace. The Nasdaq Composite index has seen a similar rise for 14 weeks out of 15, and the Dow Jones DJIA has only had such a long rising period 14 times since its establishment.
Stock exchanges have confirmed improved earnings of companies, especially in large technology companies, and the US central bank has stopped raising interest rates, creating an expectation of future interest rate decreases. Investors also seem to be inspired by potential efficiency improvements in companies brought about by artificial intelligence.
Last year, economic growth was allowed to continue despite fears of a recession due to government interventions such as stimulus packages and low-interest rates policies that boosted consumer spending and business investment. However, these interventions may have limited long-term economic growth as they led to increasing levels of debt and inflationary pressures that could lead to higher borrowing costs for businesses and households alike. Additionally, geopolitical tensions such as trade wars between major economies could further destabilize global financial markets and lead to market volatility in emerging economies with weaker currencies than developed countries like China or Japan.
In conclusion, while stocks have been performing well over the past few months due to favorable market conditions and government interventions that boosted consumer spending and business investment, there are concerns about long-term economic growth given increasing levels of debt and inflationary pressures that could lead to higher borrowing costs for businesses and households alike.