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It doesn’t mean stocks will continue to rise indefinitely, but it does reflect a generally optimistic outlook on Wall Street.
The S&P 500 index closed at a record on Friday, crossing above its old high-water mark, set in early 2022. The gains show that investors have overcome fears of rising interest rates and panic about a recession that had governed stock trading for much of the past two years.
Instead, they’re now betting that a drop in rates will help expand corporate profits, while the economy stays on a relatively solid footing.
All the Bull Markets
The vertical scale is adjusted to orders of magnitude so that percentage changes are comparable.
5,000
4,000
3,000
2,000
S&P 500
1,000
+401%
3,999
days
+102%
500
1,826
days
Each shaded
area represents
a bull market
+582%
4,494
days
100
50
+126%
2,248
days
The longest
bull market
+86.4%
1,512
days
+267%
10
2,607
days
5
1930
’40
’50
’60
’70
’80
’90
2000
’10
’20
5,000
4,000
3,000
2,000
S&P 500
1,000
+401%
+102%
3,999
days
500
1,826
days
Each shaded area
represents a bull market
+582%
4,494
days
100
The longest
bull market
+229%
1,839
days
+126%
50
+80%
2,248
days
1,324
days
+86.4%
1,512
days
+267%
10
2,607
days
5
1930
’40
’50
’60
’70
’80
’90
2000
’10
’20
5,000
4,000
3,000
2,000
+401%
S&P 500
3,999
days
1,000
+102%
500
1,826
days
Each shaded area
represents a bull market
+582%
4,494
days
100
+229%
1,839
days
The longest
bull market
50
+126%
+80%
2,248
days
1,324
days
+86.4%
1,512
days
+267%
2,607
days
10
5
1930
’40
’50
’60
’70
’80
’90
2000
’10
’20
Even though the S&P 500 had struggled to push into the record — having bumped up against it for weeks before finally crossing above with jump on Friday — the record high should also put an end to a debate on Wall Street about whether the recent run-up in shares reflected a lasting shift in sentiment, or if it was just a rebound that would fade as fear over the outlook for the economy returned.
For the average person, it does not matter what label analysts are applying to the stock market when it is heading higher, but with the new high, they will be hearing a lot more about the “bull market.”
Here’s what to know about the market now.
What makes this a bull market?
“Bull market” isn’t an official designation. There is no governing body that says what it is, or decides when it started (as there is with a recession). But on Wall Street, there are two common ways the label gets applied.
One says a bull market is confirmed when a major index like the S&P 500 climbs 20 percent above its most recent low. By that standard, the bull market was confirmed in June, when the S&P 500 closed 20 percent above its October 2022 low.
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