NEW YORK — The S&P 500 closed Friday at 7,354, marking its seventh straight weekly gain and an 8.5 percent advance over the period. This extended rally represents the kind of momentum that historically drives additional gains through year-end.
The data supports continued strength. Since 1950, the S&P 500 has posted seven-week winning streaks only 12 times. In those instances, the index gained an average 5.6 percent over the subsequent three months and 11.2 percent over the next year. With the index now trading at 22 times forward earnings, these historical patterns suggest current valuations remain justified.
Technology stocks drove the recent advance despite Friday's mixed performance. Apple gained 0.4 percent to $298.97 while Microsoft fell 1.4 percent to $417.42. Nvidia dropped 0.8 percent to $220.61. The selling reflects profit-taking rather than fundamental concerns, as corporate AI spending continues to accelerate.
Earnings momentum supports the rally's sustainability. Meta Platforms closed Friday at $602.61 after delivering strong revenue growth in recent quarters, while Amazon fell 2.1 percent to $259.34 on sector rotation rather than company-specific concerns. Federal Reserve Chair Jerome Powell's cautious stance on rate cuts has removed monetary policy volatility, allowing investors to focus on corporate fundamentals.
The persistent advance challenges bearish forecasts that predicted a near-term correction. Robust earnings and stable monetary policy reinforce a positive outlook for U.S. equities, with investors now pricing in continued economic stability and corporate profitability through the remainder of the year.
