Impressive Performance of U.S. Stocks in 2021


According to data from Dow Jones Market Data, U.S. stocks have been performing exceptionally well this year. Both the S&P 500 and Nasdaq Composite are on track for their strongest first seven months of a year in decades.

S&P 500 Continues to Rise

As of the last check, the S&P 500 has recorded a monthly gain of 3% in July, pushing its year-to-date rise to approximately 19.4%, based on FactSet data. This impressive performance indicates the index’s resilience and potential for further growth.

Nasdaq Composite Leads the Pack

The technology-heavy Nasdaq Composite has also witnessed significant gains, set to advance by 3.9% this month. So far this year, the index has soared by almost 37%. Remarkably, the Nasdaq is on track for its best first seven months of a year since 1975 when it saw a surge of 39.1%. Although it experienced some retracement later that year, it still ended up with an overall gain of nearly 30%.

S&P 500 Poised for Historic Year

The S&P 500, which includes a broader range of companies, is also showing remarkable strength. It is heading towards its best performance in the first seven months of a year since 1997, when it achieved a 28.8% gain through July, according to Dow Jones Market Data. In 1997, the index ended the year with a 31% rise.

In conclusion, U.S. stocks have impressively outperformed expectations in 2021. Both the S&P 500 and Nasdaq Composite have exhibited significant growth, demonstrating their potential for continued success.

U.S. Stocks Soar in 2023, Bond Market Signals Confidence

The U.S. stock market has experienced a remarkable turnaround after facing significant losses in 2022. The Federal Reserve’s aggressive interest rate hikes to combat high inflation caused a downturn, but things have changed this year. Despite the cost of living remaining elevated, it has been gradually declining. This positive trend coincides with the continued growth of the economy as the Fed eases its rate hikes in 2023.

According to DataTrek, the corporate bond market is reflecting confidence in company cash flows, giving a “green light” for further stock gains throughout the year. This indicates a positive outlook for investors.

Although the S&P 500’s gains have been mainly driven by Big Tech stocks in 2023, there are signs of a broader stock-market rally. Bank of America’s equity and quant strategists predict that the rally’s expansion observed in June will persist in the second half of the year. Interestingly, only 25% of stocks outperformed the S&P 500 in the first six months of 2023, making it the narrowest first-half breadth ever. The strategists shared these insights in a research note from BofA Global Research.

To learn more about this evolving situation and what it means for investors, click here: The ‘narrow breadth’ chorus has fallen silent. What broadening participation in stock-market rally means for investors.

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