The stock markets in New York closed on Friday with the S&P 500 rising an unprecedented 22.5 percent over the past 15 weeks, marking a historic increase. This index measures the price development of the 500 most important companies in the United States. According to Dow Jones market data, the S&P 500 index has risen in 14 out of the last 15 weeks, with the last time it saw a similar winning streak being in 1972 during Richard Nixon’s presidency.
The S&P 500 index is now up an impressive 22.1 percent over 15 weeks, which is the largest consecutive gain for the index since August 28, 2020. The index crossed 5,000 for the first time on Friday, and other US stock market indices have also been rising at a historically high pace. The Nasdaq Composite index has seen a similar rise for 14 weeks out of 15, and the Dow Jones DJIA has only had such a long rising period just four times since its establishment.
Stock exchanges have confirmed improved earnings of companies, especially in large technology companies, and the US central bank has stopped raising interest rates, creating an expectation of future interest rate decreases. Investors also seem to be inspired by potential efficiency improvements in companies brought about by artificial intelligence.
Last year, economic growth was allowed to continue despite initial indications that a recession might be imminent. Despite this unexpected turn of events, investors continued to show confidence in their investments as they saw potential benefits from continued growth and efficiency improvements brought about by technology and innovation.