The S&P 500 confirms bull market

S&P 500 hits record high after two years of soaring inflation, banking turmoil, and economic uncertainty.

By Nadia Elbilassy | @Nadia Elbilassy | 22 January 2024

Copied
Market close
  • 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!

Major indices

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.

Copied