The New York Stock Exchange has seen several economic ups and downs during its 226-year old history. The world’s largest stock exchange, evaluated at $21.3 trillion, is the ground zero of market capitalization and the U.S. economy. Located at the heart of Wall Street, it demonstrates the success of American businesses and is closely observed by the public who holds market shares. On 22nd August, 2018, one of the common market index, the S&P 500 equaled 3,452 days of Bull Run, equaling the previous record.
The S&P 500 determines the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. On the day, it reached a record intraday high of 2,873.23 points, rising by 0.6%. While the S&P 500 industrial index rose 0.8%, the S&P consumer discretionary index climbed 0.9% – riding high on the success of off-price retailer TJX Companies and good quarterly reports by the homebuilding company, Toll Brothers. In compliance with high prices for oil and metals, the S&P 500 energy index rose 0.5% while the S&P 500 materials index gained 0.4%.
The Wall Street has seen some records being broken this year, as it witnessed the largest drop by a publicly-shared company. Facebook’s shares dropped by 21%, following the news of people boycotting the social media platform on lack of data privacy. It has also seen Apple become the first trillion dollar company in U.S history.
The ongoing spat between Donald Trump and China, which has seen both countries slap tariff on each other’s product, hasn’t done much in deterring the market. A relative calm in the trade dispute and reports of strong earnings in the consumer sector has propelled stock prices in the market. With news of U.S and China inching closer to settle their trade dispute, trade-sensitive industrial stocks rose for the fourth consecutive session, backed by optimism among its investors. On the day, the S&P 500 industrial index rose by 0.8%.
Kevin Caron, senior portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey, has said, “Investors still seem relatively optimistic about growth, and you’re seeing that expressed in the market today.”
Other indexes also managed to show significant growth. While the Dow Jones Industrial Average rose by 0.25%, the Nasdaq Composite managed a 0.49% surge. The small-cap Russell 2000 index, which is less affected by global tariff disputes than its large-cap peers, ended the session up 1.15%, at a record closing high.
The Federal Reserve Bank announced in a policy meeting during the week that it seeks reassurance in the U.S economy and committed to future hikes in rates of consumer goods. Following the statement, Donald Trump criticized them for doing so and asked them, instead, to help him boost the economy. This resulted in the drop of the dollar – which eventually helped commodity prices.
The news of Michael Cohen, Donald Trump’s former personal lawyer, pleading guilty to eight charges – including violations of campaign finances, resulting in the stock market dipping slightly at the end of the day. Stephen Massoca, senior vice-president at Wedbush Securities in San Francisco, says, “The stock market loves the Trump agenda. Anything that’s damaging to Donald Trump’s agenda is not going to be good for the stock market.”
Unless the S&P 500 Index manages a drop down of 20% on 23rd August, it will break the record for the longest Bull Run in Wall Street’s History.