The S&P 500 Just Did Something It Has Only Done 11 Times Before. The Stock Market Usually Does This Next.
The S&P 500 (SNPINDEX: ^GSPC) came strong out of the gate this year. The index soared 10.2% during the first three months of 2024, its best first-quarter performance since 2019.
Several factors contributed to that upward momentum. S&P 500 components reported better-than-expected growth in revenues and earnings in the fourth quarter. Investors are still excited about artificial intelligence. And Wall Street is increasingly confident that the U.S. economy is heading for a "soft landing," a scenario in which the Federal Reserve's interest rate hikes and fiscal tightening bring inflation back under control without causing a recession.
First-quarter returns of 10% or more are relatively rare. In fact, excluding the current year, the S&P 500 index has recorded a double-digit gain during the first quarter just 11 times since its inception in 1957. The good news for investors is that the stock market has historically moved higher following those events. The bad news is that Wall Street expects the S&P 500 to move lower this year.
Source Fool.com
