It's official. The S&P 500 set a new record on Friday, surpassing the record level set in January 2022. This all-time high confirms the bull market that began in October 2022, when the composite index hit a low of 3,577.03. Since then, the benchmark has risen more than 34%. Conventional wisdom considers an increase of more than 20% to be a bull market, but most market observers wait for new highs before calling it an official bull market. Doing so eliminates bear market rebounds, which can reach more than 20% in some cases. If history is any indication, stocks could see even bigger gains ahead, data from CFRA Research shows. The index rose an average of 156% over the course of a typical bull market dating back to 1947, with a median increase of 101%. Data shows that on average, bull markets last more than 1,700 days, or more than four years. The median duration of a bull market is just over 1,500 days. In comparison, the current run has lasted about 15 months, or less than a year and a half. The milestone comes as investors grow optimistic that the U.S. Federal Reserve will cut interest rates before the end of the year. The excitement has pushed shares higher in recent months, overcoming a slowdown seen at the beginning of the new trading year. “When you break out, especially after such a long period of time, it tends to mean momentum is on your side,” said Art Hogan, chief market strategist at B. Riley Wealth Management. “I think having such a tough start to the year, especially after sprinting towards the end of last year, is certainly helping investors develop a more risk-on attitude.” Bullish Market performance may fluctuate. The longest bull market lasted from 2009 to 2020, lasting approximately 4,000 calendar days, with an overall increase of more than 400%. The shortest bull market on this list began when the index was just 14 points, resulting in a 22% gain in less than two years. The S&P 500's all-time high as of Friday's close marked the first time in 512 trading days without a record close, according to Bespoke Investment Group. According to the company's data, since 1952 there have been only five streaks in which the stock did not end the trading day at a new high.
CHOOSE LANGUAGE
SELECT LANGUAGE BELOW
