The S&P 500 index, a key gauge of U.S. large-cap stocks, is on track to post substantial gains for the first half of 2024, surpassing historical averages significantly. According to Bespoke Investment Group, the index’s performance this year has been outstanding, with its advance in the first six months set to exceed the historical average by a wide margin.
As of the latest data from FactSet, the S&P 500 has achieved a year-to-date gain of 14.8%, a remarkable feat compared to its historical average gain of 4.72% since 1953. This performance highlights the strong momentum in the U.S. stock market as it enters the final week of trading for June 2024.
The rally in the S&P 500 has been driven largely by the impressive performance of a few major technology stocks. Notably, Nvidia Corp. has seen its shares surge around 155% in 2024, significantly boosting the index. Other tech giants such as Facebook parent Meta Platforms Inc., Google parent Alphabet Inc., Amazon.com Inc., and Microsoft Corp. have also outperformed the S&P 500 index this year, contributing to its robust gains.
On Wednesday, the U.S. stock market closed on a positive note, with the S&P 500 rising by 0.2%. The technology-heavy Nasdaq Composite climbed by 0.5%, and the Dow Jones Industrial Average posted a modest gain of less than 0.1%. These gains reflect a continued positive sentiment in the market, driven by strong corporate earnings and investor optimism.
The S&P 500’s performance in the second quarter has been impressive, with a rise of over 4% following a 10.2% jump in the first quarter of the year. In June alone, the index has increased by 3.8%, demonstrating its resilience and sustained upward trajectory.
Looking ahead, historical data suggests that July could be a particularly favorable month for equities. According to Bespoke Investment Group, July has historically been the best month of the year for the S&P 500, both since the index’s inception and over the past 20 years. This historical trend bodes well for investors, suggesting that the market could continue its positive performance in the coming month.
In summary, the S&P 500’s strong gains in the first half of 2024 underscore the robust performance of the U.S. stock market, driven by significant contributions from major technology stocks. As the market heads into July, historical patterns indicate that equities could continue to perform well, offering potential opportunities for investors.