Amid Economic Fluctuations, the Index Shows a Continuous Upward Trend
As we near the end of August, the global economy is facing a degree of uncertainty. Concerns over escalating COVID-19 cases and the possibility of reinstating closures and restrictions, coupled with less promising reports from China, have cast a somewhat gloomy shadow. Nevertheless, this past summer witnessed encouraging developments for stock market indicators, and analysts suggest that this positive trajectory is set to continue, particularly for the S&P 500.
Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, pointed out, “The S&P 500 has achieved at least one new record high close every week since the week of June 7, 2021, totaling 13 consecutive weeks. In August 2021 alone, there have been 12 new record high closes out of 21 trading days, with one day remaining.” Silverblatt also emphasized that “year-to-date, the index has hit 53 new record high closes, placing it tied for the 4th highest in index history since 1926,” and strongly asserted, “If you’re not invested, you’re certainly missing out, and potentially missing opportunities (stay vigilant).”
Mark Haefele, UBS’s chief investment officer, noted, “The S&P 500 has crossed the 4,500 mark for the first time, pushing the 2021 gains beyond 20%. Despite recent negative news such as underwhelming U.S. consumer data and a persistent rise in COVID-19 cases, we maintain our belief that the momentum towards reopening and recovery remains strong, with more room for growth in equities.” This statement was derived from a client note by Haefele that was reported by MarketWatch.
UBS predicts that the S&P 500 will reach 5,000 in the near future. Learn more: https://t.co/tlWtQa6fSq
— MarketWatch (@MarketWatch) August 31, 2021
Haefele highlighted the consistent increase in corporate profits, with many companies surpassing their earnings from previous quarters. He mentioned, “We anticipate that the cost pressures for businesses will ease as supplies catch up. Additionally, consumers’ financial positions are currently at their strongest in decades due to a significant accumulation of savings over the past year. Retailers are likely to continue replenishing their inventories to keep pace with demand,” Haefele explained.
