All indications are that it will have a good opportunity to pass the mark in the coming week as analysts continue to see improving housing and manufacturing sectors. When it does top the mark, it will be the first time the S&P 500 has surpassed the 2,000 milestone. It wasn’t too long ago that the 2000 mark still looked quite far out of reach. The index has managed to recover 4.1% when it fell to a two-month low on August 7 and it appeared the 2,000 milestone might be months away.
The S&P 500 has come a long way over the last 5 and a half years. On March 9, 2009, the index was sitting at 676.53 points at its low during the 2007 – 2009 bear market. At the time, there were fears the index might go even lower, possibly much lower. It didn’t, however, reversing the trend to where it now stands to top 2000 points in the coming days.
It’s been a pretty impressive feat. During the 5+ years, the index has managed to achieve a 194% gain helped by three major rounds of stimulus given through the Federal Reserve, plus strong corporate earnings. Once know for its volatility, the index has avoided a 10 percent drop in value over the last three years.
Overall, all three of the major indexes had another good week. The Dow Jones industrial average had a negative Friday with a 38.27 point fall (-0.2%) to 17,001.22 for the day, but was up 338.31 points for the week (2.0%), and managed to stay above 17,000 milestone for the first time in several weeks. The Dow is now well out of negative territory for the year, up 424.56 points (2.6%) for the year.
The Nasdaq composite continued it steady climb by adding 6.45 points (0.1%) to 4,538.55 on Friday, and up 73.62 points (1.7%) for the week. That’s a 361.96 point increase for the year, or 8.7 percent.
(Photo courtesy of dflorian1980)