FLASH: The S&P 500 is on track for its best YTD return in more than 20 years, the catalyst: cheap money ahead.
The broad-market benchmark is up 20.7% YTD, which would represent the richest year-to-date return for the S&P 500 SPX through July 26 since Y 1997, when it gained 26.74%, according to Dow Jones Market Data.
Information technology shares XLK have led the rally in Y 2019, up 33.2% YTD, with consumer-discretionary shares XLY +25%, and the communication-services sector XLC + 24.8% rounding out the Top 3 performing sectors among the S&P 500’s 11 so far on the year representing the best YTD return for the 123-anni blue-chip gauge since 2013 and the best for the tech-heavy NAS Comp since Y 2003.
- NAS Comp +25.5% YTD
- S&P 500 +20.7% YTD
- Russell 2000 +17.1% YTD
- DJIA+16.6% YTD
At this time last year, the S&P 500 was up just 6.1%, the DJIA was 3.3% higher and the NAS Comp boasted a 13.7% return through July 26, 2018.
The catalyst for the rally has been clear: cheap-money policies from global central banks and it does not appear that is is all priced in yet.
HeffX-LTN’s overall technical outlook for the 3 major US stock market indexes if Bullish at the week ended 27 July 2019
Have a terrific weekend.