Index fund traders are making massive profits as the S&P 500 is rallying this year, defying all odds and analytical commentary. The index closed Friday’s bell at 5,648 and is only a stone’s throw away from reaching its 52-week high of 5,669.
The rally is making the US stock market print gains at regular levels, and almost all investors who took an entry position this year are making profits. This comes even after murmurs of a recession hitting the US are doing the rounds this year.
Also Read: Lloyds Bank Says Customers Spend Millions on Products That Never Arrive
S&P 500 Index Rally: Investor Confidence and Market Performance
Leading investment banks such as JP Morgan and Goldman Sachs predict more than a 20% probability of recession. However, investors do not give much importance to the calls as their predictions have been wrong. The investors’ confidence is boosting the S&P 500 index, as positivity in the markets is at its peak.
Also Read: BRICS: Chinese Yuan Beats Euro To Become the Second Most Used Currency
S&P 500 Index Surges 10.5% in 20 Days, Touching $5 Trillion Market Cap
Source: Finbold
The S&P 500 index touched a record $5 trillion market cap this month from its lowest point on August 5, 2024. The notable increase represents a 10.5% surge in 20 trading days, equating to a $250 billion daily gain. Leading stocks such as Apple Inc., Microsoft, and Google have all surged double digits year-to-date.
Also Read: India Seeks $3.8 Billion Loan To Expand Oil Refinery
Apple Inc is up nearly 24% YTD, while Google shot up close to 19%. On the other hand, Microsoft spiked 13% YTD, and all three leading tech giants rebounded quickly after the July stock market crash. The S&P 500 index is bouncing back after every dip, leading to investors who indulged in bottom fishing making profits.
Leading Tech Stocks Drive Market Gains
The US stock market is booming this month, paying no heed to the warnings from doomsayers and naysayers. Fortune also called the S&P 500 index “a once-in-a-lifetime rally” ahead of Fed rate cuts.