In exciting news for fans of Wall Street: The S&P 500 Index (SP: .INX) entered a new bull market overnight. That’s good news for the S&P/ASX 200 Index (ASX: XJO) today. It’s up 0.29% at the time of writing.
But is the Aussie index also gearing up to roar 20% above its recent lows? Let’s take a look.
Wall Street rejoice! The S&P 500 has entered a new bull market
Yesterday was a big one for United States markets, as the S&P 500 officially entered a new bull market. That means it’s covered 20% of ground since its most recent low.
The S&P 500 includes the 500 largest companies listed in New York – around 80% of the United States’ available public market capitalisation.
Thus, its heavily weighted towards the nation’s tech giants, such as Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN). Such stocks have regained plenty of lost ground in recent weeks amid a boom in investor sentiment surrounding AI.
The index continued its recent rally overnight, soaring 0.62% to close at 4,293.93 points. That’s 20% higher than its October low of 3,577.03 points.
The S&P 500 is the last of Wall Street’s three majors to reach the milestone.
The Dow Jones Industrial Average Index (DJX: .DJI) entered a bull market in November 2022, with the Nasdaq Composite Index (NASDAQ: .IXIC) following suit last month.
Will the ASX 200 be next?
Sadly for Aussie investors, the ASX 200 still appears a ways away from a bull market.
The index closed at a two-year low of 6,433.4 points in September. That means it would have to reach 7,720 points to enter a new bull market. It closed yesterday’s session at 7,099.7 points.
But, while the next bull market might not be on the ASX 200’s doorstep, rest assured it’s on the horizon. That’s if history is anything to go by.
The market has always historically recovered from corrections, bear markets, and crashes to roar to new record highs.
I have no doubt that the ASX 200 will follow in the S&P 500 footsteps in the coming months, years, or decades, with patient investors winning out in the end.
