The S&P 500 confirms bull market
S&P 500 hits record high after two years of soaring inflation, banking turmoil, and economic uncertainty.
Dow Jones entered bull market in September 2022, Nasdaq still needs around 5% to reach its previous record high close from November 2021.
Nvidia and Advanced Micro Devices were among the top gainers, while Microsoft and Apple also experienced positive movement on Friday.
Investors remain cautious as earnings season continues, with Netflix on Tuesday and Tesla on Wednesday.
On the Market Watch!
On Friday, the S&P 500 officially confirms bull market status since October 2022 by achieving a record high close for the first time in two years. The index rose by more than 1% to close the day at 4,839 fueled by a surge in chipmakers, driven by artificial intelligence optimism, coupled with investor expectations of a Federal Reserve interest rate cut in 2024, also contributing to gains.
Significantly, the index underwent an almost 25% downturn from its prior record peak on January 3, 2022, to its October 2022 low during a significant sell-off. Bull markets are typically marked by rising prices and a positive economic backdrop.
A common metric to identify a bull market is when the asset's price has surged by 20% or more from its recent significant low. These market conditions can endure for extended periods, ranging from months to several years.
The Dow Jones previously confirmed that it had entered a bull market starting September 2022, while the Nasdaq still needs almost 5% to reach its previous record high close of 16,057 achieved in November 2021.
Nvidia was one of the biggest gainers on Friday, rising 4.2% while Advanced Micro Devices rose over 7%. Additionally, Microsoft and Apple rose 1%.
Investors are likely to exercise caution as the earnings season progresses, with a particular focus on Netflix scheduled for Tuesday and Tesla set to report on Wednesday.