S&P 500 rises for a 7th day in a row
Stocks rose again on Friday 2nd July as the S&P 500 hit another record high after the June jobs report showed 850,000 new, well above analysts expectations.
The index rose 0.75% to 4352 while the Nasdaq climbed 0.81% claiming its own record at 14639. The Dow also added 153 points to close at 34786 fast closing in on its all time high. A positive continuation as the U.S. economic cycle moves from first to second half of the year.
The S&P 500 has now risen for seven consecutive sessions, its longest winning streak since August 2020 and all setting record highs.
Tech gains push S&P 500 to euphoric highs
Stellar gains in major tech stocks helped push the overall market on Friday, with shares of Apple and Salesforce rising by nearly 2% and 1.3%. Microsoft was up 2.2%.
The S&P 500 has risen in five of the past six weeks, while the Nasdaq has gained in six of the past seven weeks.
Inflation and interest rate fears in June appear to have subsided allowing the markets to test new highs.
Never bet against the Fed
As the U.S. takes the weekend off for independence day we should look to the Fed to see what happens next. These big market gains are pretty much down to Fed fiscal policies and government stimulus.
Even with the recent strength for stocks, market analysts suggest that uncertainty about the future of the Fed’s asset purchases and the upcoming earnings season could keep stocks from achieving more major gains in the short term.
Excessive gains?
But with so much ‘cheap’ money sloshing around the system, short term gains are still likely.
What catalyst is out there lurking in the dark financial clouds that could unravel these frothy market highs?
A major cyber attack, a final firing shot from the pandemic, poorer earnings (that do not back up market gains), the Fed adjusting policy, real inflation, interest rate hikes, or will good old fashion greed do the damage in the end?
Something will unravel these gains – and soon!