Despite economic fluctuation, the index is on a gradual upward tick.
As August concludes, the global economoy is in a bit of a confusing state. Concerns about rising COVID-19 cases and the potential of renewed closures and restrictions, as well as less than stellar reports from China, have left the overall mood somewhat sour. Even so, this past summer has been a positive one for stock indexes, and according to analysts, that won’t be stopping any time soon, especially for the S&P 500.
“The S&P 500 has posted at least 1 new closing high every week since the week of June 7, 2021, 13 weeks in a row. August 2021 has posted 12 new closing highs in the 21 trading days, with one day left to go,” said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
“Year-to-date the index has posted 53 new closing highs, and is tied for the 4th highest in index history (from 1926),” Silverblatt added, urging that, “if you’re not in it, you’re nuts, and most likely out of a job (keep your finger on the button).”
“The S&P 500 has broken above 4,500 for the first time, taking gains for 2021 to over 20%. This might seem surprising given the recent run of negative news, including disappointing U.S. consumer data and a continual rise in COVID-19 infections. But we believe that the momentum toward reopening and recovery is intact and that there is further upside to equities,” UBS’s chief investment officer Mark Haefele said in a client note picked up by MarketWatch.
The S&P 500 is headed for 5,000, says UBS. Here’s the when and how. https://t.co/tlWtQa6fSq
— MarketWatch (@MarketWatch) August 31, 2021
Haefele noted that corporate profits are on a consistent upswing, with a large number of companies beating their earnings quarter over quarter. “We believe cost pressures for businesses should subside as supply begins to catch up. In addition, consumers’ balance sheets are at their strongest in decades due to the significant buildup in household savings over the past year, and retailers will continue to restock to keep up with demand,” said Haefele.
