Stocks were opened on Tuesday with a calm start, but there was a lot of excitement brewing underneath. The markets are currently seeing a very unique rally, with the S & P 500 inching closer to a nine-day winning streak. The last time the S & P 500 saw a streak like this was back in November 2004, 20 years ago. The index is now just 1.1% below its record high closing level from July 16. This rally, which began on August 5, has spread widely across the market. Various indicators show the strength of the market, such as the S & P 500 Equal Weight ETF reaching a historic high and the NYSE advance/decline line also hitting a new high.
All 11 sectors of the S & P 500 have shown positive growth since the low on August 5, with many sectors reaching or nearing new record highs. Sectors like technology, financials, industrials, real estate, utilities, consumer staples, and health care are all performing well. The market seems to be broadening its rally, with both growth and defense sectors showing strength.
There are several factors contributing to this situation, such as the expectation of a soft landing in the economy, strong job growth, anticipated rate cuts by the Fed, and stable earnings. The recent volatility in early August helped unwind some crowded trades, leading to a more stable market environment.
Other Stories
Bank of Korea likely to keep rates steady; first cut expected in Oct: Reuters poll