Stocks make history with seven straight S&P 500 records

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(Bloomberg) – In a year in which the S&P 500 hit all-time highs every four days, Friday’s rise didn’t seem like anything special. But here’s what’s new: He set the seventh consecutive session of records, a feat that hadn’t been seen since 1997.

The benchmark index extended its longest rally since last August, as data showed that employment in the United States posted its strongest growth in more in 10 months, while the unemployment rate rose to 5.9%. The report helped reinforce views that the Federal Reserve will not rush to tighten monetary policy in the short term so as not to jeopardize the economic recovery from the pandemic.

“Things are opening up quite well and that’s what the stock markets are reacting to – the S&P 500 is hitting new highs every day,” said Krishna Memani, chief investment officer at Lafayette College in an interview with Jonathan Ferro at Bloomberg TV. The Fed’s policy makers “want to wait and see how things are going to play out and the payroll data, from that perspective, basically reinforces their thinking.”

Backed by massive fiscal and monetary stimulus, stocks have seen an epic bear market rally in 2020. Rising more than 90% in 15 months, at this point in a cycle, the S&P 500’s performance during that span is the best since the 1930s.

The strong rebound came amid unprecedented investor appetite during the first half of 2021, when nearly $ 600 billion was invested in equity funds, a pace that, if annualized, would exceed the total inflows of each. one of the previous 20 years, according to data compiled by Bank of America Corp.

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While all the daily gains for the S&P 500 were less than 1%, if history is any guide, investors may consider continuing to invest after continued rallies like this one. Since 1927, the S&P 500 has achieved similarly long periods of record highs in 12 other cases; all but one were followed by higher prices three months later, with average gains of 2.6%.

Nota Original:Stocks Make History With S&P 500 Scoring Seven Records in a Row

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