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The stock market hasn’t seen a winning streak like this since 1985

The stock market hasn’t seen a winning streak like this since 1985

REUTERS/Brendan McDermid

  • The stock market rally is on track to become the strongest since 1985 according to Bespoke.

  • The S&P 500, Nasdaq 100 and Dow Jones Industrial Average have risen nine weeks in a row.

  • The last time the S&P 500 and Nasdaq 100 were in unison was in 1985, when they posted 11-week winning streaks.

The current stock market rally is on track to be the strongest since 1985, according to Bespoke.

THE S&P500, Nasdaq100And Dow Jones Industrial Average are expected to record a nine-week winning streak that began on October 30.

“There’s still a full trading day left in the week, but the S&P 500 and Nasdaq are both on track for their ninth consecutive positive week, something they haven’t done in unison since late 1985 ” Bespoke said. declared on X Friday.

In 1985, the S&P 500 and Nasdaq 100 recorded 11-week winning streaks, according to data dating back to 1971.

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Custom made

The S&P 500 and Nasdaq 100 must close above 4,754 and 16,777 respectively on Friday for weekly winning streaks to stay alive. As of Friday morning, they were barely above their closing levels from last week.

What is particularly striking about the current rally in stocks is its strength. Since Oct. 30, the S&P 500 and Dow Jones have risen about 15%, while the Nasdaq 100 has jumped about 17%.

The rise was triggered by data showing a continued decline in inflation, strong third-quarter profits and a dovish pivot from the Federal Reserve.

Whether the weekly winning streak continues through 2024 remains to be seen, but Fundstrat’s Tom Lee thinks further gains likely in early 2024 before slight 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 surpassed that level. Since 1950, there have been 11 instances where the S&P 500 fell 20% and then has climbed within 1% of its previous level. 11 out of 11 times, the S&P 500 has quickly reached an all-time high. The median time is 7 days and can reach 20 trading days, meaning new highs of here January 2024,” Lee said.

Read the original article on Business Insider

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