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“Can the S&P 500 Reach & Maintain the 4300 Level?

The SP 500 is a stock market index that measures the performance of 500 large cap companies in the United States. It is one of the most widely followed and widely accepted barometers of global market sentiment. The index gained nearly 41 percent in 2020, marking its best year since 2013, and has already gained 5 percent in 2021. However, in recent weeks the index has been hovering around the 4300 level, leading investors to ponder if it can possibly hold that level. The immediate answer is a resounding yes. The SP 500 has already logged multiple record highs, proving its resilience to break new grounds. Strong fiscal stimulus from the U.S. government and unprecedented monetary policies from the Federal Reserve have kept investors’ confidence high and helped facilitate a strong market rebound this year. Several factors such as rising employment numbers, recovering business sentiments, higher corporate earnings, and better-than-expected economic growth could further contribute to a market bull run. Moreover, the SP 500 is backed by some of the largest and most reliable companies in the world. These companies have proven they can withstand market ups and downs and succeed in difficult economic times. With such depth of experience, it’s reasonable to think they could well continue to lift the SP 500 beyond the 4300 level. The broader market outlook is also looking positive with many countries already securing the necessary regulatory approvals to begin re-opening their economies. This could unleash a wave of consumer and agency spending, driving price appreciation and momentum in the markets. This could well help the SP 500 continue to hold the 4300 level. In conclusion, the SP 500 has already logged several records over the last year and may well be poised to set more. The broad market fundamentals, including U.S. stimulus plans, unprecedented monetary policies and a gradual re-opening of global economies all paint a positive picture. As such, it is possible that the SP 500 will continue to hold the 4300 level.