Stock Market Soaring: Why Traders Are Celebrating in 2024

The stock market is on fire in 2024, with US stocks breaking record after record. The S&P 500 has hit all-time highs a remarkable 31 times since the beginning of the year, averaging a new high every four trading days. Despite potential obstacles like elevated interest rates, inflation, political turmoil, and economic uncertainty, investors have remained optimistic, propelling markets to the best start to an election year on record.

Historically, presidential election years have been good for stocks, with the S&P 500 generating an average return of 7% since 1952 during these years. When the incumbent president is running for reelection, that average jumps to 12.2%. This year, however, the S&P 500 is already up 14.6% year-to-date, surpassing these averages and marking the best start to an election year ever.

So, what makes this election cycle different? For one, this is the first election since 1892 where both major party nominees are incumbents, bringing a sense of stability and certainty that investors crave. With reduced uncertainty, there is potential for an early year-end election relief rally.

Overall, the stock market in 2024 is defying expectations and setting new records. To learn more about the impact of presidential elections on markets, check out the link provided.