Stocks surged to record highs last week, with the S&P 500 experiencing a 1.2% climb to reach 4,839.81. At present, the index is up 1.5% year-to-date and has soared by 35.3% from its closing low of 3,577.03 on October 12, 2022.
The stock market journey often involves periodic declines, a foundational truth known to longstanding TKer readers since the publication’s debut in October 2021. The S&P 500 had previously reached a record high in January 2022. The optimism on Wall Street at the start of 2022, with many strategists forecasting the S&P to exceed 5,000 by year-end, was countered by sustained high inflation. This inflation, widely perceived as transitory, persisted and intensified early in 2022 due to persistent high demand and disruptions in supply chains.
Consequently, there was increased aggressiveness in monetary policy tightening by the Federal Reserve, surpassing initial expectations. Fed Chair Jerome Powell even cautioned that achieving victory over inflation might necessitate economic “pain.”
Amid these developments, the S&P 500’s surge to a record high last Friday marked a significant milestone, being the first time in over two years. Noteworthy among the stocks is the exceptional performance of Eli Lilly. As the market continues to evolve, it remains as both an intriguing and challenging arena for investors and analysts alike.
This article is inspired by a post that initially appeared on TKer.co and includes insights into the recent stock market performance and the impactful factors steering this remarkable ascent.
