S&P 500 - Closes Above 5,000

 February 10, 2024

NOTE: THIS BLOG IS NOT FINANCIAL ADVICE NOR INVESTMENT ADVICE AND DOES NOT REFLECT THE VIEW OR OPINIONS OF MY EMPLOYER

The S&P 500 crosses 5,000! It was only April 1, 2021, when the index closed above 4,000 for the first time. The index ended the week of February 9th up ~1.37% crossing the 5,000 mark for the first time on the back of bullish sentiment and positive momentum in connection with progress on inflation. In addition to cooling inflation, the market has witnessed strength from optimism with the potential for artificial intelligence (AI), strong quarterly earnings, and expectations for rate cuts from the Federal Reserve (FED).

With this recent price appreciation, the S&P 500's price-to-earnings (P/E) forward valuation rose to 20.4x which is well above the historical average of 15.7x

The market has continued to show strength despite difficulties in the real estate market and rising geopolitical tensions.

NOTE: THIS BLOG IS NOT FINANCIAL ADVICE NOR INVESTMENT ADVICE AND DOES NOT REFLECT THE VIEW OR OPINIONS OF MY EMPLOYER

Sources:

1. MarketScreener.com

2. Financial Times. Past performance suggests S&P 500 has further to go after record high. Ray Douglas. February 9, 2024. Link

2. Reuters. As S&P 500 breaches 5,000, its valuation hits lofty levels as well. Lewis Krauskopf. February 9, 2024. Link

3. CNN Business. S&P 500 closes above key 5,000 level for first time. Nicole Goodkind and Krystal Hur. February 9, 2024. Link