- The S&P 500 just notched its biggest weekly gains of 2024, as did the Dow Jones Industrial Average and the Nasdaq Composite.
- The S&P 500 has been in bull market territory for 22 months, and the index has advanced 55% during that period.
- It has returned an average of 184% during past bull markets, and it realized those returns over an average of 65 months.
The S&P 500 rebounded sharply last week, recovering from its worst July in a decade and early August losses, thanks to encouraging economic data. The index surged 3.9% last week, fueled by reports showing inflation hitting a three-year low and strong retail sales. This rally has brought the S&P 500 back within 2% of its record high, raising hopes that the current bull market has much more room to run.
Bull Market Potential
Historically, it has averaged an 184% gain during bull markets, lasting around 1,964 days. With the current bull market delivering a 55% gain over 22 months, there’s potential for another 129% upside if history repeats itself. Even at the median, the index could see a 53% rise over the next 34 months.
Risks to the S&P 500 Bull Market
Despite the positive outlook, risks remain. The S&P 500 is trading at a premium, and any disappointing economic data or failure by the Federal Reserve to lower interest rates could derail the bull market. Investors should stay cautious, continue buying quality stocks, and be ready to take advantage of potential market pullbacks.
