REUTERS/Brendan McDermid
The stock market rally is on track to be the strongest since 1985 by one measure, according to Bespoke.
The S&P 500, Nasdaq 100, and Dow Jones Industrial Average have moved higher nine weeks in a row.
The last time the S&P 500 and Nasdaq 100 were in unison like that was in 1985, when they notched 11-week win streaks.
The current stock market rally is on track to be the strongest since 1985 by one measure, according to Bespoke.
The S&P 500, Nasdaq 100, and Dow Jones Industrial Average are set to notch nine-week win streaks that began on October 30.
“There’s still a full trading day left in the week, but both the S&P 500 and Nasdaq are on pace for their ninth straight positive week, something they haven’t done in unison since late 1985,” Bespoke said on X on Friday.
In 1985, the S&P 500 and Nasdaq 100 posted 11-week win streaks, according to data going back to 1971.
Bespoke
The S&P 500 and Nasdaq 100 need to close above 4,754 and 16,777 respectively on Friday for the weekly win streaks to stay alive. As of Friday morning, they were just slightly above their closing levels from last week.
What’s particularly striking about the ongoing rally in stocks is how strong it has been. Since October 30, the S&P 500 and Dow Jones have risen about 15%, while the Nasdaq 100 has jumped about 17%.
The surge higher was sparked by data showing a continued decline in inflation, solid third-quarter earnings, and a dovish pivot from the Federal Reserve.
As to whether the weekly win streak continues into 2024 remains to be seen, but Fundstrat’s Tom Lee thinks more gains in early 2024 are likely before a modest pullback materializes in February or March.
“The S&P 500 is now within 1% of the all-time high of 4,801 but has not yet exceeded this level. Since 1950, there are 11 instances where the S&P 500 fell 20% and then climbed to within 1% of its prior all-time high. 11 of 11 times, the S&P 500 quickly made an all-time high. Median time is 7 days and as long as 20 trading days, meaning new highs by January 2024,” Lee said.
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