Live After Quit

“Will GNG TV Lead Us To an S&P 500 Breakout & All-Time Highs By Year End?

The S&P 500 has been on a splash this year, since smashing through its all-time high in February and venturing to a string of quarterly highs up until now. With the market’s success so far this year, investors have been considering if the rally can continue until the end of the year and return to the mark set earlier this year. To assess whether this is likely or not, one should first examine the underlying factors driving the gains in the S&P 500. Economic macro drivers have been the primary reason for stock market growth this year, with the expectation that economic recovery will revitalize corporate earnings. The US government’s stimulus measures, such as providing liquidity and employment assistance to sectors hit hard by the pandemic, were also key in catalyzing stock market gains. Moreover, a pickup in global economic activity is helping to boost investors’ confidence as many countries move away from tight lockdown rules. Looking ahead, the progress in this year’s corporate earnings could be a major boost for stock markets. Analysts expect the second quarter of 2021 to see a strong rebound in earnings on the back of improved economic outlook and corporate cost-cutting measures. If earnings growth continues for the remainder of the year and markets stay optimistic, the S&P 500 could maintain its bullishness throughout the remainder of 2021. Further support for stock markets could come from record-low interest rates, which could continue to support investors who are engaging in risk-on activities such as stock trading. This could lead to further record highs. On the other hand, rising inflationary pressures could lead to a tightening of monetary policies by major central banks, which could reduce the stimulus support for stock markets. In conclusion, the S&P 500 appears to be on a trajectory of continued growth. While the progress of corporate earnings and government policies in the short-term could determine whether the S&P 500 will reach its all-time high again by the year’s end, the conditions look to be in the right place for it to happen.