The S&P 500 Just Had Its Best Week of 2024. History Says the Stock Market Will Do This Next.

The S 500 (SNPINDEX: ^GSPC) lost momentum last month. The index had its worst July in the past decade, and the losses accelerated in early August, when recession fears resurfaced after a disappointing jobs report. The S 500 closed 8% below its record high on Aug. 5, after suffering its worst day in nearly two years.

However, the tide turned quickly last week on encouraging economic data. Specifically, reports showed that inflation hit a three-year low in July, while retail sales remained surprisingly strong. In addition, megaretailer Walmart raised its full-year sales forecast and CFO John Rainey said, "We have not seen any incremental fraying of consumer health."

In turn, the S 500 advanced 3.9% last week, notching its best weekly performance of 2024. The other major U.S. stock market indexes also had their best weeks of the year. The blue-chip Dow Jones Industrial Average (DJINDICES: ^DJI) climbed 2.9% and the growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) advanced 5.3%.

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Source Fool.com