The Stock Market never quits in its surprises!
Tuesday saw the S&P 500 index hit a fresh new high, an all-time high that has surpassed the earlier high level of January 26, which was at 2872.87. The S&P 500 went to touch a high of 2873.23, crossing the previous high.
While the S&P 500 increased by 5.91 points which is a 0.21 percent increase to close at 2,862.96, the Nasdaq gained 38.17 points to 7,859.17 which is a 0.49 percent increase.
With strong earnings growth last quarter coming in from all sectors, the fears from trade talks between China and the USA have been shrugged off.
Another record is the long span of the bull market which is seen for the past nine years. It has overpowered the bull span of the previous 1990’s bull market. Market watchers, who are keenly watching records, have something new to watch out for. The bull market has been on its positive run for 3,452 days, which is its longest duration.
Even with various problems ailing the market such as retaliatory trade tariffs imposed, hike in interest rates and economic disturbances, the markets continue being strong.
Jamie Cox from Harris Financial, Virginia says that market will continue to be strong until the economy is strong and employment rate continues to remain positive along with good corporate earnings.
Kevin Caron from Crossing Advisors Washington says that investor optimism is being expressed through the market.
The policy meeting for August on Wednesday will show the Fed’s approach to hike rates for the future.
One can see the earnings profit growing at a very fast rate for the past two quarters of 2018. Thomson Reuter’s earnings-tracker says that almost 8 out of 10 companies are showing results above analyst forecasts while showing earnings growth of 27 percent in the first quarter.
This is the chief force that is driving the markets up as it has boosted investor confidence in business growth.