3 Reasons Why the Stock Market Rally Could Extend Through Year-End

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S&P 500 Nouvelles

Dow Jones Industrial Average,NASDAQ Composite

Stocks Analysis by Investing.com (Ismael De La Cruz) covering: S&P 500, Dow Jones Industrial Average, NASDAQ Composite. Read Investing.com (Ismael De La Cruz)'s latest article on Investing.com

Amid better-than-expected macroeconomic data and with rate cuts on the horizon, the market could sustain its momentum.Unlock access to InvestingPro’s AI-selected stock winners for under $9 a month!The positive momentum raises an intriguing question: can this rally sustain its energy as we head into year-end?

Let’s explore three specific reasons why the market rally could not only persist but potentially accelerate as we approach the close of the year.The S&P 500’s recent all-time highs in October are historically a good omen. Since 1950, when the index hits a record in October, it tends to climb another 5% on average through the end of the year.

This scenario has played out nine times before , with only two exceptions—1967 and 1987—where the market didn’t keep rising.The Dow Jones is up more than 10% year-to-date, a setup that’s led to further gains in 22 out of 29 cases since 1950. Historically, the Dow adds about 5% in the final quarter under these circumstances.

With all major indices showing strong trends and history on the bulls’ side, the stock market looks poised to keep climbing into the close of 2024. Of course, it is crucial to keep in mind that past performance is never a guarantee of future results.This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way.

 

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