The S&P 500 (SNPINDEX: ^GSPC) is widely regarded as the best barometer for the overall U.S. stock market due to its scope and diversity. The index measures the performance of 500 large companies that cover 80% of U.S. equities by market capitalization.

The S&P 500 advanced 14% during the first half of 2024, outpacing the historical average of 5%, and one stock market indicator says the index is headed even higher in the coming months. Specifically, during presidential election years involving an incumbent (a president running for reelection), the S&P 500 has always -- 100% of the time -- generated a positive return in the second half of the year.

Here's what investors need to know.

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Source Fool.com