Will the bull market continue?

Stocks soared last week, with the S&P 500 gaining more than 3.5% while the tech-heavy Nasdaq soared more than 5%, both making new all-time highs along the way. Sparking the surge was continued strong overall earnings. According to FactSet, Q2 S&P 500 earnings are now up a staggering 50.4%, the best since Q2 2021. At the start of earnings season, earnings were expected to be up approximately 23%, and they were up 38% just two weeks ago. Additionally, 86% of companies have reported earnings that came in better than expectations, one of the highest beat rates ever. Earnings have historically driven long-term stock gains, and this remains a big reason why stocks have done so well this year.

The Big Picture

Looking at the bigger-picture past several months. From March lows, the S&P 500 soared 16% in April and May, then stocks moved side ward from June-July, which is totally fine as stocks generally need a breather.

Another angle here is that after a negative Q1, the S&P 500 came back with a historic nearly 15% gain in Q2. After a flat July, things are getting back on track in August which is historically a weak month.

The Bull Continues…

With the S&P 500 back at new highs, the bull market is officially 3.8 years old (it’ll turn four in October). Bull markets have historically tended to last much longer than many investors think.

I will continue to follow the wave with AI, Semi’s and diversification.

Happy Investing….